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Which of the following deals with management accounting?

A) identifying the costs of acquiring the resources of the company
B) developing budgets
C) preparing the income statement
D) preparing the statement of cash flows

User Ashwini
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1 Answer

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Final answer:

B) developing budgets

Management accounting primarily deals with tasks such as identifying the costs of acquiring company resources and developing budgets. These aspects are integral to management accounting's focus on internal decision-making and operational control.

Step-by-step explanation:

Management accounting deals with various aspects of accounting that are used to inform internal decision-making processes. Of the options provided:

  • A) identifying the costs of acquiring the resources of the company and
  • B) developing budgets

are both tasks associated with management accounting. Conversely,

  • C) preparing the income statement and
  • D) preparing the statement of cash flows

are typically associated with financial accounting, which is concerned with providing information to external users such as investors, creditors, and regulatory agencies.

Therefore, the aspects pertaining to management accounting are focused on internal analysis, cost management, and budgetary control, which help in planning and controlling the organization's operations.

User Verpous
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