Since Internal Users Have Access to All the Underlying Data

question 72

Multiple Choice

Since internal users have access to all the underlying data used for managerial accounting reports,

• A)They can create reports that suit their particular decision making needs.
• B)There is no need to use financial data in making decisions.
• C)Both they can create reports that suit their particular decision making needs and there is no need to use financial data in making decisions.
• D)Neither they can create reports that suit their particular decision making needs nor there is no need to use financial data in making decisions.

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Definitions:

Gross Margin

The difference between sales revenue and cost of goods sold, shown as a value or percentage, indicating the efficiency of sales relative to production costs.

Gross Sales

Gross sales represent the total sales revenue of a company without any deductions for returns, allowances, or discounts.

Periodic Inventory System

A method of inventory accounting where updates to inventory levels are made periodically at the end of an accounting period, rather than continuously.

Purchases Account

An account used in accounting to record goods acquired for resale during a particular period.