Question

Activities included in a generally accepted definition of management accounting include:

a) preparing, organizing, converting
b) planning, organizing, controlling
c) planning, operating, reporting
d) preparing, operating, creating

Answer 1

The generally accepted definition of management accounting includes activities like planning, operating, and reporting, which are integral to internal business operations and decision-making.

Step-by-step explanation:

Activities included in a generally accepted definition of management accounting include planning, operating, and reporting. Management accounting is an integral part of the management process in a business and is geared toward internal users like managers. Unlike financial accounting which focuses primarily on the preparation of financial statements for external stakeholders, management accounting involves planning financial strategies, operating the business efficiently, and reporting financial information to internal users for decision-making purposes.