Which of the Following Characteristics Relates More to Managerial Accounting

question 29

Multiple Choice

Which of the following characteristics relates more to managerial accounting than to financial accounting?

• A)A focus on reporting to personnel within an organization.
• B)A focus on reporting to external parties.
• C)An area of accounting that is heavily regulated.
• D)A focus on providing information that assists shareholders in making investment and credit decisions.
• E)A focus on providing information for the benefit of financial institutions.

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Definitions:

Organic Structure

A flexible, decentralized organizational structure with low levels of formalization.

Informal Communication

The exchange of information through non-official channels, often based on personal relationships rather than organizational structure.

Innovation

The process of creating, developing, and implementing new ideas, processes, or products that are intended to improve efficiency, effectiveness, or competitive advantage.

Departmentalization

The method by which an organization divides its operations into separate units or departments based on function, product, geographic location, or customer base.