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Multiple Choice QuestionThe internal use of accounting statements by managers in planning and directing the organization's activities is referred to as ______.Multiple choice question.cost accountingmanagerial accountingplan accountingbookkeeping

Question

Multiple Choice QuestionThe internal use of accounting statements by managers in planning and directing the organization's activities is referred to as ______.Multiple choice question.cost accountingmanagerial accountingplan accountingbookkeeping

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Solution

The correct answer is "managerial accounting".

Managerial accounting is the practice of identifying, measuring, analyzing, interpreting, and communicating financial information to managers for the pursuit of an organization's goals. It is different from financial accounting, because it is used for internal decision-making and not for external reporting.

Similar Questions

Fill in the Blank QuestionFill in the blank question.The internal use of accounting statements by managers in planning and directing the organization's activities is known as accounting. (Enter one word in the blank.)

Multiple Choice QuestionThe information and analysis that comes from managerial accounting is used to ______.Multiple choice question.prepare tax returns and financial statements required by the IRSaudit the firm's business activities and verify the accuracy of financial statementsprovide information to potential investors of the firmassist managers inside the organization with their decision making

Managerial accounting is used to provide information to Blank______.Multiple choice question.those outside the firmgovernmental agencies onlythose inside the firmthose both inside and outside the firm

Financial accounting and managerial accounting differ in terms of who uses the information. Financial accounting provides information primarily for ______.Multiple choice question.people outside the organizationmanagerial accountantsthe governmentpeople inside the organization

The area of accounting that provides information to managers inside the organization to assist them in decision making is called Blank______.Multiple choice question.financial accountinggovernment accountingmanagerial accountingtax accounting

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