Question

Flexibility of practice when applied to managerial accounting means that: Multiple Choice The information must be presented in electronic format so that it is easily changed. Managers must be willing to accept the information as the accountants present it to them, rather than in the format they ask for. Managerial accountants must be on call twenty-four hours a day. Managerial accounting systems differ across companies depending on the nature of the business and the arrangement of its internal operations. Managers must be flexible with information provided in varying forms and using inconsistent measures

Answer 1

Flexibility of practice in managerial accounting means that the systems are tailored to meet the specific needs of each company, varying according to business nature and internal structures. As businesses grow, they rely more on accounting information, leading to increased confidence among outside investors for providing financial capital.

Step-by-step explanation:

When it comes to flexibility of practice in managerial accounting, it means that the managerial accounting systems vary across companies. This variation is due to differences in the business and the structure of the company's internal operations. A flexible managerial accounting system allows for the adaptation of reports and practices to meet the specific needs of management within various business environments. As businesses become more established and their strategies seem likely to become profitable, the emphasis on the personal knowledge of individual managers decreases, which implies an increasing reliance on the information presented through managerial accounting to make strategic decisions. Consequently, this encourages outside investors who may not personally know the managers, like bondholders and shareholders, to invest in the firm more confidently.

Therefore, managerial accounting must offer flexibility to adequately serve the different and changing information needs of internal management for decision-making and strategic planning purposes.

Answer 2

Managerial accounting systems differ across companies depending on the nature of the business and the arrangement of its internal operations.

Step-by-step explanation:

Managerial accounting also known as cost accounting is an accounting technique focused on identification, measurement, analyzing, interpretation, and communication of financial information to managers for better decisions making and pursuit of the organization's goals.

Flexibility of practice when applied to managerial accounting means that managerial accounting systems differ across companies depending on the nature of the business and the arrangement of its internal operations.

This ultimately implies that, managerial accounting is specific to a particular business organization i.e the managerial accounting model used by a company would be different from the one used by another.