Flexibility of Practice When Applied to Managerial Accounting Means That

question 141

Multiple Choice

Flexibility of practice when applied to managerial accounting means that

• A) The information must be presented in electronic format so that it is easily changed.
• B) Managers must be willing to accept the information as the accountants present it to them, rather than in the format they ask for.
• C) The managerial accountants need to be on call twenty-four hours a day.
• D) The design of a company's managerial accounting system largely depends on the nature of the business and the arrangement of the internal operations of the company.
• E) Managers must be flexible with information provided in varying forms and using inconsistent measures.

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Definitions:

Administrative Costs

Expenses associated with daily operations of managing a business or organization, including office supplies, salaries of non-production staff, and utilities.

Customer Classification Departments

Divisions within a company that segment customers based on various criteria to tailor marketing and service delivery.

Mercy Medical Center

A healthcare institution providing medical care and services; without specific details, this can refer to any one of several hospitals by the same name in different locations.

Rule Utilitarianism

An ethical theory that suggests the rightness or wrongness of an action should be judged by the rules that are followed, and that these rules should be chosen based on the utility or happiness they produce.