_____________ Accounting Is Used to Provide Information and Analysis to Managers

question 35

Short Answer

_____________ accounting is used to provide information and analysis to managers within the organization to assist them in decision making.

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Definitions:

Activity-Based Costing

A method of accounting that identifies the activities in an organization and assigns the cost of each activity to all products and services according to the actual consumption by each.

Internal Decision-Making

The process within an organization by which decisions are made by its members or systems based on internal criteria, policies, and data.

Direct Materials Costs

The expenses for raw materials that are directly used in the production of a product.

Activity Cost Pools

A method in activity-based costing that aggregates all indirect costs associated with a particular activity, allowing for more precise allocation of overheads to products or services.