In Order to Be Useful to Managers, Managerial Accounting Reports

question 88

Multiple Choice

In order to be useful to managers, managerial accounting reports should possess all of the following characteristics except

• A) provide objective measures of past operations and subjective estimates about future decisions
• B) be prepared in accordance with generally accepted accounting principles
• C) be provided at any time management needs information
• D) be prepared to report information for any unit of the business to support decision making

---

Definitions:

Place Theory

a theory in the field of hearing that suggests different areas of the cochlea in the inner ear respond to different frequencies of sound, aiding in pitch perception.

Opponent-Process Theory

A theory of color vision that proposes three pairs of color antagonists: red-green, blue-yellow, and white-black. Excitation of neurons sensitive to one member of a pair automatically inhibits neurons sensitive to the other member.

Impulse Frequency Theory

A theory that proposes the frequency of nerve impulses, or action potentials, is related to the intensity of a sensation such as sound or light.

Timbre

The quality of a sound apart from its pitch or loudness; timbre enables us to distinguish a clarinet from an oboe, or one person’s voice from another.