Rules for Measurement and Reporting for Management Accounting ________

question 166

Multiple Choice

Rules for measurement and reporting for management accounting ________.

• A) state that information must only be useful to management.
• B) do not need to follow GAAP but must meet the cost-benefit test.
• C) must follow GAAP.
• D) must follow GAAP, IRS rules or government standards.

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Definitions:

ROI

Return on Investment (ROI) measures the gain or loss generated on an investment relative to the amount of money invested.

Multi-Dimensional Performance Reporting

A comprehensive approach to performance measurement that considers various factors beyond financial metrics to evaluate an organization's overall performance.

Financial Results

The outcome of a company's activities in numerical terms over a specific period, often presented in income statements, balance sheets, and cash flow statements.

Cause and Effect Relationships

The principle that every effect has a specific and predictable cause, commonly applied in scientific and logical analysis.