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:

Buying Center

A group of individuals within an organization who are involved in making a purchasing decision.

Deciders

Individuals or groups within an organization responsible for making final purchasing or policy decisions.

Formal Authority

The power granted to an individual or organization by virtue of their position or role, enabling them to enforce rules or make decisions.

Buying Center

A group of individuals within an organization who collectively participate in the decision-making process regarding the purchase of goods and services.