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The design of a management accounting system should consider how reports affect employees' behavior.
2) GAAP must be followed when managerial accounting reports are prepared.
3) Management accounting requires independent audits of the firm's books.
4) The primary purpose of managerial accounting information is to help external users make investing and lending decisions.
5) The primary users of managerial accounting information are internal users such as managers.
6) The primary managerial accounting product is the company's audited financial statements.
7) Managerial accounting information emphasizes relevance, more than reliability and objectivity.
8) Managerial accounting information tends to report on segments of the business.
9) Managerial accounting reports are always prepared on a quarterly and annual basis.
10) Managerial information is always based on historical transactions with external parties.
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