Which of the Following Statements Is Not True

question 3

Multiple Choice

Which of the following statements is not true?

• A)A company is unlikely to be successful in the long run without adequate managerial accounting information to support decision making.
• B)Managerial accounting is completely optional.
• C)Managerial accounting reports are covered by rules comparable to those governing financial accounting.
• D)Internal users have access to all the underlying data in managerial accounting reports.

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Definitions:

Order Cycle Time

The total time that elapses from the moment a customer places an order until they receive their purchase.

Cycle Time Length

The total time from the beginning to the end of your process, as defined by you and your customer. It measures the time taken to complete a single process cycle effectively.

Activity-Based Costing

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

Profitability

An indicator of a business's ability to generate earnings compared to its expenses and other relevant costs incurred during a specific period of time.