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ACCA Applied Knowledge · Business and Technology · Accounting and finance functions within business organisations

Which of the following is a characteristic of management accounting information but NOT normally of published financial statements?

Management accounting information can include non-financial measures like machine hours or customer complaints, because managers need whatever data helps them plan and control operations. Published financial statements are primarily monetary and follow standard formats for external users.

  1. AIt is prepared on the going concern basis
  2. BIt may include non-financial measures such as machine hours or customer complaintsCorrect
  3. CIt is expressed in monetary units of the reporting currency
  4. DIt is produced for a defined accounting period of one year

Explanation

Management accounting may use non-financial data and any time frame, such as daily or weekly reports. Published statements are mainly monetary and annual, so non-financial measures distinguish management information. The other options can apply to both.

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