Asked by Grace Sookhai on May 07, 2024
Verified
Which of the following is the principal reason for preparing managerial accounting reports?
A) usefulness to management
B) cost of preparation
C) clarity
D) GAAP
Managerial Accounting Reports
Internal financial reports tailored to the needs of an organization's management, containing operational and financial data to aid in decision-making.
Usefulness
The degree to which something fulfills a need, serves a purpose, or provides benefits to users.
GAAP
Stands for Generally Accepted Accounting Principles, which are a set of rules and standards used for financial reporting and accounting.
- Understand the standards and objectives behind the creation of managerial accounting reports.
Verified Answer
CP
Chandler ParkerMay 13, 2024
Final Answer :
A
Explanation :
The principal reason for preparing managerial accounting reports is to provide useful information to management in making decisions related to planning, controlling, and evaluating business operations. While clarity and adherence to GAAP may be important considerations, they are not the primary reason for preparing managerial accounting reports. Cost of preparation may also be a factor, but it is secondary to providing useful information to management.
Learning Objectives
- Understand the standards and objectives behind the creation of managerial accounting reports.