The purpose of management accounting is to ___________?

Correct answer: C. help managers make decisions

  • A. past orientation
  • B. help banks make decisions
  • C. help managers make decisions
  • D. help investors make decision

Explanation

Management accounting provides internal information such as budgets, forecasts, and cost analyses to help managers plan and make decisions. Helping banks and investors is primarily associated with financial reporting, not the main purpose of management accounting.

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About Cost Accounting

Cost accounting measures and analyses the cost of producing goods or providing services for planning, control and pricing decisions. It covers direct and indirect costs, fixed and variable costs, job and process costing, break-even analysis, marginal costing, overhead allocation, and the difference between product cost and period cost.

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