Question

Managerial accounting information Question 48 options: A) pertains to the entity as a whole and is highly aggregated. B) is constrained by the requirements of generally accepted accounting principles. C) is prepared only once a year. D) pertains to subunits of the entity and may be very detailed.

Answer 1

Answer:

The correct answer is letter "D": pertains to sub-units of the entity and may be very detailed.

Explanation:

Managerial Accounting is internally-based accounting that helps managers measure the results of their decisions. This is in contrast to financial accounting which emphasizes more general, higher-level financial results. One common managerial accounting tool is determining the profit margin in each of the company's products. This information helps managers set product prices and ensure that they are making appropriate profit margins.