Which of the Following Is Not an Objective of Managerial

question 81

Multiple Choice

Which of the following is not an objective of managerial accounting?

• A) Providing information for decision making and planning.
• B) Assisting in directing and controlling operations.
• C) Maximizing profits and minimizing costs.
• D) Measuring the performance of managers and subunits.
• E) Motivating managers toward the organization's goals.

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Definitions:

Shutting Down

A short-term decision by a firm to cease production due to market conditions, typically when revenue does not cover variable costs.

Fixed Costs

These are business expenses that remain constant regardless of the level of goods or services produced, such as rent, salaries, and insurance premiums.

Average Variable Cost

The total variable costs divided by the quantity of output produced, representing the variable cost per unit.

Marginal Cost

The additional cost incurred by producing one more unit of a good or service.