Which of the following is a primary focus of managerial accounting?

• A. Preparing financial statements for external users
• B. Auditing financial statements for accuracy
• C. Providing information for internal decision-making
• D. Ensuring compliance with tax regulations

Answer: (C)

Verified step by step guidance

1. Understand the distinction between managerial accounting and financial accounting. Managerial accounting focuses on providing information for internal decision-making, while financial accounting is concerned with preparing financial statements for external users.
2. Review the primary objectives of managerial accounting, which include budgeting, forecasting, cost analysis, and performance evaluation to assist managers in making informed decisions.
3. Eliminate options that are clearly related to financial accounting or other fields, such as 'Preparing financial statements for external users' and 'Auditing financial statements for accuracy,' as these are not the focus of managerial accounting.
4. Consider the role of managerial accounting in ensuring compliance with tax regulations. While it may assist in this area, it is not the primary focus of managerial accounting.
5. Conclude that the correct answer is 'Providing information for internal decision-making,' as this aligns with the core purpose of managerial accounting.