1. Managers need accounting information and need to know how to use it. Evaluate this statement?

2. The owner of a small software company felt his accounting system was useless. He stated, Accounting systems only generate historical costs. Historical costs are useless in my business because everything changes so rapidly.

a.Are historical costs useless in rapidly changing environments?

b.Should accounting systems be limited to historical costs?

3.Planning is really more vital than control. Do you agree? Why?