Management Accounting Reporting by a Public Firm Is Required to Follow

question 92

True/False

Management accounting reporting by a public firm is required to follow the rules of GAAP and guidelines of the Securities Exchange Commission.

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Definitions:

Investment Center

A division or unit within a company that is responsible for its own revenues, expenses, and assets, and its performance is evaluated on its return on investment.

Generates Revenue

Activities or processes that result in the earning of income for a business through the sale of goods or services.

Incurs Costs

To undergo or suffer expenses during the execution of activities or operations.

Profit Center

A business segment or department within an organization that is responsible for generating its own revenue and thereby directly impacting profitability.