Final answer:
Managerial accounting focuses on special-purpose information and is not solely governed by GAAP, extends beyond mere cost data, and assists in internal decision-making processes.
Step-by-step explanation:
The question at hand asks which statement is true about managerial accounting. Managerial accounting:
- (a) is not governed by generally accepted accounting principles (GAAP).
- (b) places emphasis on special-purpose information for internal decision-making.
- (c) does not solely pertain to the entity as a whole but can be highly detailed and specific to departments or projects.
- (d) is not limited to cost data but includes all aspects of financial data that can assist management in making operational decisions.
Managerial accounting is the process that provides financial and nonfinancial information to an organization's management and other internal decision-makers. Unlike financial accounting, it focuses on detailed reports and information to assist in daily operational decisions, future planning, and overall strategies.
This includes analysis of costs, revenues, and profitability which can lead to effective resource allocation and improving the financial performance of the company. As firms grow and outside investments increase, detailed knowledge of management's personal business plans becomes less critical since more information about the company's financial activities becomes available for assessment.