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ACCA Applied Knowledge · Financial Accounting · Stakeholders' needs

Which of the following is most likely to be found in management accounting information but NOT normally in a company's published financial statements?

A cost per unit analysis by product line with a forecast is typical management information. It is detailed, internal and forward-looking, whereas published financial statements report historic results of the entity as a whole, including the statement of financial position, accounting policies and cash flows.

  1. AA statement of financial position showing total equity
  2. BA cost per unit analysis for each product line, with a forecast for next quarterCorrect
  3. CA note disclosing the accounting policy for inventories
  4. DA statement of cash flows showing cash from operating activities

Explanation

Product-level unit costs and forecasts are internal, detailed and forward-looking, so they appear in management information. The other three items are standard components or disclosures of published financial statements under IFRS.

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