In Order to Be Useful to Managers, Managerial Accounting Reports

question 88

Multiple Choice

In order to be useful to managers, managerial accounting reports should possess all of the following characteristics except

• A) provide objective measures of past operations and subjective estimates about future decisions
• B) be prepared in accordance with generally accepted accounting principles
• C) be provided at any time management needs information
• D) be prepared to report information for any unit of the business to support decision making

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Definitions:

Common Fate

A principle of Gestalt psychology where individuals tend to perceive elements as part of a group if they move together in the same direction.

Linear Perspective

A system of creating an illusion of depth on a flat surface by converging parallel lines at a single point on the horizon.

Retinal Disparity

A binocular cue for perceiving depth based on the differences in the images seen by each eye because of their different perspectives, enabling three-dimensional perception.

Interposition

A visual cue used to perceive depth, where one object partially blocks the view of another, indicating that the blocking object is closer to the observer.