Managers Use Management Accounting Information to ________

question 193

Multiple Choice

Managers use management accounting information to ________.

• A) help external users such as investors, banks, regulators, and suppliers
• B) communicate, develop, and implement strategies
• C) communicate a firm's financial position to investors, banks, regulators, and other outside parties
• D) ensure that financial statements are consistent with the SEC rules

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Definitions:

Units of Labor

Measurements used to quantify the work input by labor forces, often referring to hours worked or number of workers.

Diminishing Returns

A principle stating that if one input in the production of a commodity is increased while all other inputs are held fixed, a point will eventually be reached at which additions of the input yield progressively smaller, or diminishing, increases in output.

Marginal Product Curve

A graphical representation that shows how the addition of one more unit of a resource to production affects the output of a product.

Total Product Curve

A graphical representation showing how the total quantity of output varies with changes in the quantity of a single input while other inputs are held constant.