Which of the Following Is True Regarding Managerial Accounting

question 35

Multiple Choice

Which of the following is true regarding managerial accounting?

• A) It often emphasizes on segments rather than the organization as a whole.
• B) It must be prepared as according to generally accepted accounting principles.
• C) Its primary focus is on providing information to external users.
• D) It is less flexible than financial accounting.

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Definitions:

Underapplied

A situation in manufacturing where the allocated overhead costs are less than the actual overhead costs incurred.

Overapplied

A condition where the allocated or applied overhead costs exceed the actual overhead costs incurred, leading to a temporary discrepancy in accounting records.

Predetermined Overhead Rate

A rate used to allocate manufacturing overhead cost to products or job orders, based on expected overhead costs and a chosen allocation base.

Variable Component

A variable component refers to a part of a cost or expense that varies directly with the level of output or activity.