Question

Which of the following is an example of the implementation of managerial accounting?

Question 5 options:

	An internet company uses Quickbooks to do its bookkeeping
	A car manufacturer looks at reduction of costs in production
	A gas station looks at its bank account and pays out a dividend
	A candy company uses its financial statements to do it taxes

Answer 1

Answer: A Car Manufacturer looks at reduction of costs in production

Management accounting is more concerned with the assist the management of the firm for Decision making, It uses the information from the Financial Accounting, Major Decisions includes

• Cost Reduction
• Make or buy decisions
• Add or Drop
• Profit Planning
• Budgeting
• Sales Mix Decisions.
• other Decisions

From the above example Cost reduction of the product is the implementation of management Accounting.