Which of the Following Is NOT an Objective of Management

question 84

Multiple Choice

Which of the following is NOT an objective of management accounting?

• A) To provide information to business managers to assist them in planning for their business
• B) To provide information to business managers to assist them in controlling their business
• C) To provide information to shareholders to assist them with their investment decisions
• D) To assist business managers with respect to providing a return to the owners of the business

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Definitions:

Fixed Costs

Fixed expenses, including rent, salaries, and insurance, that are unaffected by variations in production or sales levels.

Units Produced

A measure of output representing the total number of units of a product made by a company or an industry during a given period.

Costs

The monetary value spent by a company to produce goods or services, including expenses such as materials, labor, and overhead.

Forecasting Risk

The risk associated with the potential inaccuracies in predicting future developments, which can impact planning and decision-making.