Final answer:
Managerial accounting focuses on providing special-purpose information to meet the internal needs of managers, which covers a range of financial details necessary for operational decisions. It is not governed by GAAP and includes more than just cost data; it is essential for informing outside investors like bondholders and shareholders about the company's performance. The correct option regarding the nature of managerial accounting is B. Places emphasis on special-purpose information.
Step-by-step explanation:
The question revolves around the nature of managerial accounting, which is distinct from financial accounting, in several ways. It is not governed by generally accepted accounting principles (GAAP) like its counterpart, financial accounting. Instead, it emphasizes on providing special-purpose information tailored to meet the needs of managers within the organization. Managerial accounting focuses on the parts of the business managers need to consider for operational decisions, which means its scope can vary substantially. It does not pertain only to the entity as a whole nor is it necessarily highly aggregated; rather, it can be very detailed and specific to different areas of the company's operations.
Also, contrary to one of the options provided, managerial accounting is not limited to only cost data, it encompasses a variety of internal financial information including but not limited to budgets, forecasts, and various forms of financial analysis. When a firm becomes established and starts to attract outside investors, such as bondholders and shareholders, the information provided by managerial accounting becomes critical. These investors usually do not have a personal relationship with the managers, hence reliable and insightful managerial reports are valuable. Therefore, in the context of the given options, the correct option for the nature of managerial accounting is: B. Places emphasis on special-purpose information.