Question

Managerial accounting information for a company

a. Relates to the entity as a whole and is highly aggregated
b. Relates to the subunits of the entity and may by very detailed
c. Is constrained by the requirements of generally accepted accounting principles
d. Is prepared only once a year

Answer 1

Correct answer is b. relates to subunits ot the entity and may be very detailed.

Step-by-step explanation

Managerial accounting involves collecting, storing, analyzing, and reporting information about the operations, activities and finances of a business. These reports are generally used by the managers of a business, rather than by any external entities, such as shareholders or lenders. The purpose of this accounting is to facilitate manager from senior to line level to make informed decision.

So in order to run the business smoothly this information/accounting is required to be very detail and covering each and every aspect of the entity.