Which of the Following Statements Is True About Management Accounting

question 27

Multiple Choice

Which of the following statements is true about management accounting?

• A) Management accounting provides financial reports to external parties that require information to meet their decision needs.
• B) Management accounting is largely unregulated.
• C) Management accounting attempts to protect the information rights and needs of all users.
• D) Management accounting adopts a pro-regulation perspective.

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Definitions:

Product Price

The financial cost of obtaining a product or service.

Marginal Revenue Product

The supplementary income realized by the application of one more unit of a resource, like labor or capital.

Labor

The engagement of human physical strength and intellectual power in producing goods and offering services.

Additional Revenue

The increase in total revenue that results from selling an additional unit of a product or service.