Question

Management accounting is concerned with four broad areas of decision making. Which of the following is NOT one of these four​ areas?

A. Developing objectives and plans
B. Allocating resources
C.Evaluating financing options
D. Determining costs and benefits

Answer 1

Management accounting focuses on internal decision-making and does not primarily involve evaluating financing options, as this is generally a part of financial accounting.

Step-by-step explanation:

The four broad areas of decision-making in management accounting include developing objectives and plans, allocating resources, evaluating business performance, and determining costs and benefits.

Evaluating financing options is typically associated with financial accounting rather than management accounting.

Management accountants focus on internal processes and decisions like cost-benefit analysis, budgeting, and internal financial analysis to enhance efficiency and profitability within an organization.