Question

Which of the following is unlikely to use management accounting information? a. A production manager. b....

Which of the following is unlikely to use management accounting information? a. A production manager.

b. A management accounting controller.

c. A shareholder evaluating firm performance.

d. A finishing department supervisor.

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Answer #1

Answer:

c. A shareholder evaluating firm performance.

Explanation:

Management accounting information involves providing feedback about previous activities, and also future, including forecasts and estimates about upcoming events. It includes the budgeted estimates of production and the balance sheet. So, the main users of the information will be employees andmanagers inside the organisation. Hence, Option (a), (b) and (d) are likely to use the management accounting information.  Financial accounting information is related mainly to external stakeholders, such as investors, creditors,regulators etc. So, the information used by the shareholders in evaluating financial performance will be Financial accounting information. So, the shareholder evaluating firm performance is unlikely to use management accounting information. Hence option (c) is correct.

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