Final answer:
Managerial accounting reports do not need to comply with GAAP.
Step-by-step explanation:
False. Managerial accounting reports do not need to comply with Generally Accepted Accounting Principles (GAAP). Instead, they focus on providing internal information to help managers make decisions within an organization.
Unlike financial accounting reports, which must adhere to GAAP for external reporting purposes, managerial accounting reports can be adjusted to meet the specific needs of management.