Asked by Hazeline Sutana on May 11, 2024

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The costs of providing information to management should be less than the benefits. Which of the following are costs of management accounting information?
i. Salary cost of management accounting personnel
ii. Computer operating costs
iii. Managers' time in reading and acting on the information

A) i, ii and iii
B) ii and iii only
C) i and iii only
D) None of the given answers

Management Accounting

The practice of analyzing and presenting financial information to internal management to assist in planning, controlling, and decision-making.

Salary Cost

The total expense borne by an employer for employee wages, benefits, and other compensation.

Computer Operating Costs

Expenses associated with running and maintaining computer systems, including software, hardware, and personnel costs.

  • Understand the costs and benefits of management accounting information.
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AH
Ayesha HassanMay 18, 2024
Final Answer :
A
Explanation :
The costs of providing management accounting information include all direct and indirect expenses related to generating, processing, and delivering the information. This encompasses the salary costs of personnel involved in management accounting (i), the costs associated with operating computers and other technology used in the process (ii), and the time managers spend reviewing and acting upon the information provided (iii), as this time could have been used for other potentially beneficial activities.