ACCA Applied Knowledge · Business and Technology · Accounting and finance functions within business organisations
Which of the following is most likely to be a user of management accounting information rather than financial accounting information?
The divisional manager is the user of management accounting information. Managers are internal users who need detailed, product-level data for decisions such as dropping a line. Banks and investors are external users who rely mainly on published financial statements.
- AA bank considering whether to renew a loan to the company
- BA divisional manager deciding whether to drop a product lineCorrect
- CA prospective investor comparing the company with competitors
Explanation
Banks and investors are external users who rely on published financial statements. A divisional manager is an internal user who needs detailed, product-level information for decisions, which is provided by management accounting.
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