Managerial Accounting Has Its Roots in the Industrial Age of Manufacturing

question 142

True/False

Managerial accounting has its roots in the industrial age of manufacturing.

---

Definitions:

Operating Expenses

Expenses incurred from normal business operations such as manufacturing costs, marketing fees, and office supplies.

Sales Revenue

Income generated from selling goods or services over a period, critical for determining a company's profitability.

Gross Profit

The financial gain calculated by subtracting the cost of goods sold from the revenue generated from sales of those goods.

Operating Expenses

Costs associated with the day-to-day operations of a business such as rent, salaries, and utilities.