Question

Indicate whether the following statements are true or false.
1. Managerial accounting reports focus on manufacturing and nonmanufacturing costs, but are also used in the budget process.
2. Financial accounting reports pertain to subunits of the business and are very detailed.
3. Managerial accounting reports must follow GAAP and are audited by CPAs.
4. Managers’ activities and responsibilities can be classified into three broad functions: planning, directing, and controlling.

Answer 1

Answer:

1. False,

2. False,

3. False,

4. True

Explanation:

1. Managerial accounting reports focuses on entire net profit and not specifically the manufacturing and non manufacturing cost, and are not specifically used in the budget process.

2. No financial accounting reports all the finance related issues in details but is not divided into sub units.

3. No managerial reports are not audited, they are for internal controls and are to follow GAAP but not mandatory requirement for audit.

4. Managers are responsible for the management of business, for this the main three steps are: Planning Directing and controlling.