Which of the Following Is Not an Objective of Managerial

question 46

Multiple Choice

Which of the following is not an objective of managerial accounting?

• A) To prepare external reports for investors, creditors, government agencies, and other outside users.
• B) To provide information for costing of services, products, and other objects of interest to management.
• C) To provide information for planning, controlling, evaluating and continuous improvement.
• D) To provide information for decision making.

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Definitions:

Allocative Efficiency

A state of resource allocation where goods and services are distributed according to consumer preferences, reflecting an optimal distribution of resources.

Producer Surplus

The gap between the minimum amount sellers are prepared to accept for a product or service and the actual price it sells for.

Negative Externalities

Costs that result from an activity or transaction and affect third parties who did not choose to incur that cost.

Quantity Decrease

A reduction in the amount or number of a particular good or service that is available or being produced.