Which of the Following Is a Characteristic of Management Accounting

question 115

Multiple Choice

Which of the following is a characteristic of management accounting?

• A) It must follow generally accepted accounting principles.
• B) It is used primarily by internal users.
• C) It is concerned primarily with reporting past performance.
• D) It uses historical costs as the sole measurement unit.

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Definitions:

Advertising Expense

Advertising Expense represents the costs incurred by a business to promote its products or services through various advertising mediums.

Closing Entries

Entries made in the accounting records at the end of an accounting period to prepare the accounts for the next period.

Journalized

The process of recording transactions in the journal, the first step in the accounting cycle.

Interim Accounting Period

A financial reporting period that is shorter than a full fiscal year, often quarterly or monthly.