Final answer:
The correct answer to the rules for measurement and reporting in management accounting is B) do not need to follow GAAP but must meet the cost-benefit test, indicating that the primary concern is providing useful information to management at a justifiable cost.
Step-by-step explanation:
The rules for measurement and reporting for management accounting dictate that information provided does not necessarily need to adhere to Generally Accepted Accounting Principles (GAAP) but should pass the cost-benefit test. Thus, the correct answer to the question is B) do not need to follow GAAP but must meet the cost-benefit test. This means that the information should be financially feasible to obtain and provide enough value to the management to justify the cost of gathering and analyzing it.
Management accounting focuses on providing tailored information to meet the needs of internal users, primarily the company's management, to assist them in decision-making. This is in contrast to financial accounting, which must follow GAAP as it aims to provide a true and fair view of the company's financial status to external users.