Rules for Measurement and Reporting for Management Accounting ________

question 166

Multiple Choice

Rules for measurement and reporting for management accounting ________.

• A) state that information must only be useful to management.
• B) do not need to follow GAAP but must meet the cost-benefit test.
• C) must follow GAAP.
• D) must follow GAAP, IRS rules or government standards.

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Definitions:

Validity

The extent to which a concept, conclusion, or measurement is well-founded and corresponds accurately to the real world.

Measurement Tool

Instruments or methodologies used to assess, evaluate, or quantify various metrics or performance indicators.

Performance Management

A continuous process where managers and employees work together to plan, monitor, and review an employee's work objectives and overall contribution to the organization.

Developmental Purpose

Refers to the aim to aid in the growth or progress of individuals, organizations, or societies through education, training, or specific initiatives.