Management Accounting

question 155

Multiple Choice

Management accounting:

• A)includes information such as budgets and forecasts.
• B)is used to make strategic decisions for the entity.
• C)must be relevant to decision makers within the entity.
• D)is all of the above.

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Definitions:

Net Realisable Value

The estimated selling price of an asset in the ordinary course of business minus any costs of completion, transportation, and selling.

Estimated Selling Costs

Expenses projected to be incurred in the process of selling an asset, which may include legal fees, marketing, and commissions that reduce the total gains from the sale.

Expected Replacement Cost

The anticipated cost to replace an asset at the end of its useful life, considering current prices and adjustments for inflation.