Traditional Managerial Accounting Systems Need to Be Modified to Support

question 10

Multiple Choice

Traditional managerial accounting systems need to be modified to support total quality management by

• A)reporting nonfinancial information to aid in problem solving,not just financial information.
• B)having line employees collect financial and nonfinancial information and use it to get timely feedback and solve problems.
• C)reporting more detailed information than that found in traditional managerial accounting systems.
• D)All of the answers are correct.

---

Definitions:

Trade-off

The concept of sacrificing one good or service to purchase or produce another.

Business Risk

The potential for financial loss or failure inherent in the operation of a business, influenced by market, industry, and internal factors.

Firm's Profits

The financial gain made by a company after deducting all expenses, costs, and taxes from its total revenue.

Guaranteed Payments

Payments that a partner receives from a partnership regardless of the partnership's income, similar to a salary for services or use of capital.