e whether the following statements are true or false. Managerial accountants explain and report manufacturing and non-manufacturing costs and determine cost behaviours, but are not involved in the budget process. Financial accounting reports pertain to subunits of the business and are very detailed. Managerial accounting reports must follow generally accepted accounting principles and are audited by chartered professional accountants. Managers' activities and responsibilities can be classified into three broad functions: planning, directing, and controlling As a result of the Sarbanes-Oxley Act of 2002, top managers must certify that the company maintains an adequate system of internal control. Management accountants follow a code of ethics de oped by the U.S. Institute of Management Accountants