The major reporting standard for presenting managerial accounting information is:

• A. Historical cost principle
• B. Generally Accepted Accounting Principles (GAAP)
• C. International Financial Reporting Standards (IFRS)
• D. Relevance to decision-making needs

Answer: (D)

Verified step by step guidance

1. Understand the context of managerial accounting: Managerial accounting focuses on providing information to internal users (managers) to aid in decision-making, planning, and controlling operations, rather than external reporting.
2. Recognize the difference between financial accounting and managerial accounting: Financial accounting adheres to standards like GAAP or IFRS for external reporting, while managerial accounting prioritizes relevance to decision-making needs over strict adherence to standardized principles.
3. Identify the key principle for managerial accounting: The major reporting standard for managerial accounting is relevance, meaning the information provided should be useful and timely for managers to make informed decisions.
4. Consider why historical cost principle, GAAP, and IFRS are not the correct answers: These standards are primarily used in financial accounting for external reporting and do not emphasize the specific needs of internal decision-making.
5. Conclude that relevance to decision-making needs is the correct answer: Managerial accounting information is tailored to be relevant and actionable for internal users, which is its primary reporting standard.