The Principal Difference Between Management Accounting and Financial Accounting Is

question 20

Multiple Choice

The principal difference between management accounting and financial accounting is that financial accounting information is:

• A)Prepared by managers.
• B)Intended primarily for use by decision makers outside the business organization.
• C)Prepared in accordance with a set of accounting principles developed by the Institute of Certified Management Accountants.
• D)Oriented toward measuring solvency rather than profitability.

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Definitions:

Product Orientation

A business philosophy that focuses on the quality and attributes of the product itself rather than customer needs or desires.

Marketing Concept

A business philosophy that emphasizes identifying and meeting the needs and wants of customers as the key to achieving organizational goals.

Production Cycle

The sequence of steps involved in producing a good or service, from the initial concept or design to the final product delivery.

Sales Concept

A marketing strategy that prioritizes making sales and considers customer needs as secondary, focusing on aggressive sales techniques.