Management Accounting Refers to the Preparation and Use of Accounting

question 46

True/False

Management accounting refers to the preparation and use of accounting information designed to meet the needs of decision makers outside the business organization.

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Definitions:

Good

A material item or service that fulfills wants or needs, often exchanged in economic transactions.

Equilibrium Price

The market price at which the quantity of a good or service demanded equals the quantity supplied.

Equilibrium Quantity

The quantity of goods or services that is supplied and demanded at the equilibrium price in a market.

Market

An economic system or environment where buyers and sellers interact to exchange goods and services for money or barter.