Question: Both managerial accounting and financial accounting provide useful information to decision makers. Indicate in the following chart the most likely source of information for each business decision (a decision can require major input from both sources, in which case both can be marked).
Primary Information Source
Business Decision Managerial Financial
1. Plan the budget for next quarter . . . . . . . . . . . . . . . . . . ____ ____
2. Measure profitability of all individual stores . . . . . . . . . ____ ____
3. Prepare financial reports according to GAAP . . . . . . . . ____ ____
4. Determine location and size for a new plant . . . . . . . . ____ ____
5. Determine amount of dividends to pay stockholders. . ____ ____
6. Evaluate a purchasing department's performance . . . . ____ ____
7. Report financial performance to board of directors. . . . ____ ____
8. Estimate product cost for a new line of shoes . . . . . . . . ____ ____