"Management accounting should not fit the straitjacket of financial accounting." Explain and give an example. C... O A. Financial accounting is constrained by generally accepted accounting principles. Companies listed on Stock Exchanges must comply with IFRS and other companies must comply with CICA standards when reporting to external parties. Management accounting is not restricted to these principles. An example would be management accountants can use measurement methods of the value of assets or liabilities not permitted under GAAP. OB. Financial accounting is constrained by generally accepted accounting principles. Companies listed on Stock Exchanges must comply with IFRS and other companies must comply with CICA standards when reporting to external parties. Management accounting is not restricted to these principles. An example would be that management accountants cannot change the method of the value of assets or liabilities not permitted under GAAP. O C. Management accounting is constrained by generally accepted accounting principles. Companies listed on Stock Exchanges must comply with IFRS and other companies must comply with CICA standards when reporting to external parties. Financial accounting is not restricted to these principles. An example would be financial accountants cannot use measurement methods of the value of assets or liabilities not permitted under GAAP. OD. Management accounting is constrained by generally accepted accounting principles. Companies listed on Stock Exchanges must comply with IFRS and other companies must comply with CICA standards when reporting to external parties. Financial accounting is not restricted to these principles. An example would be financial accountants can use measurement methods of the value of assets or liabilities not permitted under GAAP. "Increasing the number of indirect cost pools is guaranteed to sizably increase the accuracy of product or service costs." Do you agree? Why? O A. Yes, increasing the number of indirect-cost pools will always increase the homogeneity of the cost pools themselves, and will, in turn, improve the accuracy of the indirect costs allocated to product or service costs. OB. No, increasing the number of indirect-cost pools does not guarantee increased accuracy of product or service costs. If the existing cost pool is already homogeneous, increasing the number of cost pools will not increase accuracy. OC. No, increasing the number of indirect-cost pools does not guarantee increased accuracy of product or service costs. If the existing cost pool is not homogeneous, accuracy will increase only if the increased cost pools themselves increase in homogeneity. O D. Both B. and C
