In the Context of Managerial Accounting,relevant Information

question 46

Multiple Choice

In the context of managerial accounting,relevant information

• A)is information that will make a difference in the decision.
• B)is information that has been provided by the controller.
• C)must be provided in quantitative terms.
• D)must be analyzed by the chief financial officer before being provided to managers.

---

Definitions:

Purchase Discounts

Reductions in price given by suppliers to buyers as an incentive for early payment of invoices or bulk purchases.

Freight In

The cost associated with transporting goods from suppliers to the recipient, typically recorded as part of inventory cost.

Net Purchases

The total amount of purchases after subtracting any returns, allowances, and discounts over a specific period.

Purchase Returns

Occurs when a buyer returns merchandise that it had purchased from a supplier, often due to issues like defects or dissatisfaction.