Question

Which of the following information would be included on managerial accounting reports?

a.Amortization of patents
b.List of employee benefits
c.Income tax expense
d.Cost of goods sold

Answer 1

In managerial accounting reports, the cost of goods sold is included because it is important for operational decision-making. Other options, such as amortization of patents, list of employee benefits, and income tax expense, are more relevant to financial accounting or for different analysis purposes.

Step-by-step explanation:

Managerial Accounting Reports

Managerial accounting reports are designed to help managers make operational decisions and are not governed by GAAP or IFRS. Of the options provided:

• The cost of goods sold (d) is a key figure in managerial accounting as it directly impacts pricing and profitability analysis.
• Amortization of patents (a) is more relevant to financial accounting as it pertains to reporting on financial statements.
• List of employee benefits (b) could be used in managerial accounting for internal decision-making regarding workforce costs and benefits management.
• Income tax expense (c) is typically included in financial accounting rather than managerial accounting, as it's critical for external reporting purposes.

Therefore, the most likely option to be included in a managerial accounting report is cost of goods sold.