What Are Two Key Ways Management Accounting Is Different from Financial

question 49

Multiple Choice

What are two key ways management accounting is different from financial accounting?

• A)Management accounting provides special-purpose information to people external to the firm and it is highly regulated.
• B)Management accounting provides information for the day-to-day running of an organisation and it is governed by the requirements of FSA.
• C)Management accounting is focused on providing information to shareholders who wish to have input into the management of the organisation and it is regulated by generally accepted accounting principles.
• D)Management accounting focuses on providing information for internal users and it is largely unregulated.

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Definitions:

Demand

The quantity of a product or service that consumers are willing and able to purchase at various price levels at a given time.

Substitutes

Goods or services that can be used in place of each other; when the price of one goes up, the demand for the other can increase.

Elastic Demands

A market situation where the quantity demanded of a good or service significantly changes in response to a change in price.

Quantity Demanded

The total amount of a good or service that consumers are willing and able to purchase at a given price within a specified time period.