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Managerial accounting information is customized mainly for which audience?
AManagers and employees inside the company
BInvestors and creditors outside the company
CGovernment and tax agencies that collect data
DBoards of directors and external auditors
Answer & Solution
Correct answer: A. Managers and employees inside the company
1. Managerial accounting is aimed at internal groups, so its reports are built to serve managers and employees.
2. The information is customized to give those internal groups feedback for planning, decision making and evaluation.
3. Investors, creditors, boards of directors and tax agencies are external groups, and financial accounting serves them through published financial statements.
4. So the audience for managerial accounting is managers and employees inside the company.
_Source: Jonick, Principles of Managerial Accounting (UNG Press, CC BY-SA 4.0), section 1.1 Introduction_
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