Question

Which of the following is most associated with managerial accounting?a. must follow GAAPb. may rely on estimates and forecastsc. is prepared for users outside the organizationd. balways reports on the entire entity

Answer 1

Answer:

b. may rely on estimates and forecasts

Explanation:

Managerial accounting involves not only financial information, it might also include information about production processes, customer satisfaction, etc. E.g. defective units, budgeted production output, % of closed sales, etc. Managerial accounting is used by management to supervise and control how the company is operating, not necessarily if it is making a profit or not.