Indicate whether the following statements are true or false. 1. Managerial accounting reports focus on manufacturing and nonmanufacturing costs, but are also used in the budget process. Financial accounting reports pertain to subunits of the business and are very detailed. 2. 3. 4. Managerial accounting reports must follow GAAP and are audited by CPAs. Managers' activities and responsibilities can be classified into three broad functions: planning, directing, and controlling