Question

Which of the following is a characteristic of managerial accounting?
A. It is geared toward the management of an organization.
B. It is used to produce specific management reports.
C. It is not independently audited.
D. It is relatively flexible.
E. All of the above are characteristics of managerial accounting.

Answer 1

Answer: E. All of the above are characteristics of managerial accounting.

Explanation:

Managerial accounting is geared towards analysing accounting data to help management of an organization make decisions. As such it is internal and is seen by company employees.

To help the management, specific management reports are produced from which decisions affecting the company can be made. It is relatively flexible to enable it to suit the demands of the company and as it is for internal use, is not independently audited.