Final answer:
The incorrect characteristic of management accounting reports is that they are required to follow GAAP; management accounting is more flexible and tailored for internal decision-making.
Step-by-step explanation:
The characteristic of management accounting reports that is NOT accurate is: B. Are required to follow GAAP (Generally Accepted Accounting Principles).
Management accounting reports are designed to meet the internal needs of the business and its managers. Unlike financial accounting, which provides information to external stakeholders and must adhere to GAAP, management accounting is flexible and can be tailored to the specific needs of the business. Reports in management accounting can focus on specific segments of the company (option C) and do not have to be prepared on a periodic schedule, but rather are generated when needed by managers (option A). Furthermore, they are primarily used internally by managers for decision-making (option D).