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Which of the Following Is NOT a User of Management Accounting Information? Select the Correct Answer from the Options Below

Question

Which of the following is NOT a user of management accounting information? Select the correct answer from the options below Shareholders Managers Lenders Company Directors

Answer

3.8 (236 Votes)
Verificación de expertos
Piper Veteran · Tutor for 11 years

Answer

Shareholders

Explanation

## Step 1: Understanding the users of management accounting informationManagement accounting information provides detailed and updated information relevant to managers inside an organization, lending them valuable insights to help them plan and control business operations. ## Step 2: Identify users given in the optionsIn the given options - Shareholders, Managers, Lenders, and Company Directors - Managers and Company Directors can be considered primary users of management accounting as they need real-time information to make decisions related to operations, planning, and control. Lenders (or in a broader term, creditors) also use this information to protect their interest in the company. This includes understanding the financial health and the performance of the company to ensure that their investment is in safe hands. ## Step 3: Identifying the odd one outThe term "shareholders" stands out as they are often using financial accounting information - more external in nature - to make decisions about buying, holding, or selling shares. They principally depend on summarized and periodic nature of the financial reports for this kind of decision the company publishes quarterly and annually (financial accounting) and not real-time internal operations data provided by management accounting.