Management Accounting

question 19

Multiple Choice

Management accounting:

• A)provides a framework to evaluate information in light of an organization's goals.
• B)provides relevant information to managers.
• C)provides relevant information to meet specific needs of persons inside the organization.
• D)all of the above

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Definitions:

Merchandise Inventory

Products that a company holds in stock with the intent to sell as part of its business operations.

Cost of Goods Sold

Costs incurred directly from the production of goods a company markets, including both materials and workforce expenses.

Days' Sales

A financial ratio that measures the average number of days a company takes to convert its inventory into sales.

Inventory Turnover

A financial metric measuring the rate at which a company sells and replaces its stock of goods during a particular period.