Managerial Accounting Reporting by a Public Firm Is Required to Follow

question 77

True/False

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

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Definitions:

Assignable Cause

An identifiable factor that causes a change or variation in a process or system, distinguishable from random variation.

Variation

The degree to which data points in a dataset differ from each other and from the mean, indicating the dispersion within the dataset.

Output

The result or product generated by a process or system.

Random Cause

An unpredictable influence that affects the outcome of a process or experiment.