Which of the following is a core activity of management accounting?

Question

BlackTom AI · Accepted Answer

To tackle this question, I will evaluate each option in turn and explain why it fits or does not fit with management accounting.
Option a: Formulating plans and budgets. This is a hallmark of management accounting, which focuses on planning, budgeting, forecasting, and internal decision support to aid management in directing the business. It involves forward-looking analyses and internal management needs rather than external reporting.
Option b: Paying taxes. Tax payments are primarily the domain of financial accounting and regulatory compliance. While management accounting may consider tax implications in planning, the act of paying taxes itself is an external reporting obligation, not a core managerial activity.
Option c: Preparing financial statements. This is a core activity of financial accounting, which concentrates on external reporting to stakeholders such as investors, creditors, and regulators. Management accounting emphasizes internal analysis and planning rather than formal external statements.
Option d: Managing inventory. Inventory management is indeed an internal operational function and could be part of management accounting activities. However, as a core activity, formulating plans and budgets better captures the overarching planning and budgeting role that characterizes management accounting, whereas inventory management is more a specific operational task within broader internal decision support.
Overall, option a best represents a core activity of management accounting, aligning with its focus on planning, budgeting, and internal decision support. The other options correspond more closely to financial accounting, regulatory obligations, or narrower operational tasks rather than the primary strategic planning role of management accounting.

My home Progress Check

Which of the following is a core activity of management accounting?

查看解析

登录即可查看完整答案

类似问题

Typically, the first step in the budget process is to compile the ________.

Once a budget set has been saved, it cannot be modified.

What is the purpose of a budget in QBO?

QBO provides tools to create detailed budgets based on all of the following EXCEPT ________ .

Which of the following is true about managing and editing budgets in QBO?

更多留学生实用工具

考试浏览器助手

风格化写作助手

论文查重助手

文献引用助手

课堂转译助手

课堂笔记助手

Quiz搜索助手

学校历年真题

智能刷题助手

智能匹配练习

希望你的学习变得更简单