Which of the following is a type of accounting primarily concerned with providing information to internal management for decision-making purposes?

• A. Tax accounting
• B. Auditing
• C. Financial accounting
• D. Managerial accounting

Answer: (D)

Verified step by step guidance

1. Understand the different types of accounting: Tax accounting focuses on compliance with tax laws, auditing ensures the accuracy of financial statements, financial accounting provides information to external stakeholders, and managerial accounting is designed for internal decision-making.
2. Recognize that managerial accounting is primarily concerned with providing information to internal management, such as cost analysis, budgeting, and performance evaluation.
3. Identify the purpose of managerial accounting: It helps managers make informed decisions about operations, strategy, and resource allocation.
4. Differentiate managerial accounting from financial accounting: Managerial accounting is forward-looking and focuses on internal processes, while financial accounting is historical and aimed at external reporting.
5. Conclude that the correct answer to the question is managerial accounting, as it aligns with the description of providing information to internal management for decision-making purposes.