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.

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Definitions:

Total Utility

This is the aggregate level of satisfaction or value that consumers derive from consuming a given amount of goods or services.

Marginal Utility

The additional satisfaction or utility received by consuming one more unit of a good or service.

Marginal Utility

The additional satisfaction or benefit (utility) that a consumer derives from purchasing one more unit of a good or service.

Marginal Utility

The additional satisfaction or utility received from consuming one more unit of a good or service.