Analysis of Nonfinancial Data Is Important to the Management Accountant

question 24

Multiple Choice

Analysis of nonfinancial data is important to the management accountant because

• A) financial data are usually irrelevant.
• B) nonfinancial data lend themselves more to computer analysis than do financial data.
• C) managers make many decisions based solely on nonfinancial data.
• D) nonfinancial data are easier to work with than financial data.

---

Definitions:

MVA

Market Value Added, a calculation that shows the difference between the market value of a company and the capital contributed by investors.

Straight-line Basis

A method of calculating depreciation and amortization by allocating an equal amount of expense over each period of the asset's useful life.

Taxable Income

Taxable income is the portion of an individual's or a company's income used to determine how much tax they owe to the government in a given tax year.

Net Fixed Assets

The value of a company's property, plant, and equipment minus depreciation, representing long-term investments in physical assets.