Question

Because managerial accounting reports rarely solve decision problems, what function does a managerial accountant use to assist managers in understanding issues contained within the information produced?

		Internal business solution function.
		Learning and growth function.
		Theoretical capacity function.
		Customer function.
		Attention directing function.

Answer 1

Answer is Attention directing function

Managerial accounting is the use of accounting information for decision making purpose. It is used by managers for operational and strategic decision making. However, most of the managerial information assist in taking decision making and are not conclusive decision making tool. Managerial accounting information often directs manager’s attention to an issue that requires their attention. For example: Variance analysis reports, flexible budgeting reports, Total quality reports etc. managerial accounting does not helps in internal business function, or learning or growth function. It is not concerned with theoretical capacity function or customer function.