Management Accountants Primarily Are Concerned with Developing Information

question 55

Multiple Choice

Management accountants primarily are concerned with developing information:

• A) For use in income tax returns.
• B) Suited to the needs of shareholders, creditors, and other external decision makers.
• C) In conformity with generally accepted accounting principles.
• D) Suited to the needs of decision makers within the organization.

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Definitions:

Marginal Revenue

The additional income gained from selling one more unit of a product or service.

Marginal Costs

The increase in total production cost that comes from making or producing one additional unit.

Average Total Costs

The cost per unit of output, calculated by dividing the total cost by the quantity of output produced.

Technological Change

The process of innovation and development of new methods, products, or processes, driving efficiency and economic growth.