1) A typical use of managerial accounting is to:
a) help investors and creditors assess the financial position of the company
b) help management get a clean audit report
c) help the marketing manager decide which product promotion to implement
d) help the SEC decide whether management is in compliance of its policies
help the marketing manager decide which product promotion to implement
c) help the marketing manager decide which product promotion to implement
The correct answer is c) help the marketing manager decide which product promotion to implement.
To arrive at this answer, it is helpful to understand the purpose and functions of managerial accounting. Managerial accounting is a branch of accounting that focuses on providing internal information and analysis to support managerial decision-making, planning, and control within an organization.
Option a) "help investors and creditors assess the financial position of the company" is more aligned with financial accounting, which is concerned with providing external stakeholders, such as investors and creditors, with financial information about the company.
Option b) "help management get a clean audit report" is not directly related to the primary function of managerial accounting. The role of managerial accounting is more about providing information for decision-making rather than ensuring audit compliance.
Option d) "help the SEC decide whether management is in compliance with its policies" is more related to regulatory compliance rather than the primary function of managerial accounting.
Option c) "help the marketing manager decide which product promotion to implement" aligns with the purpose of managerial accounting. It provides data and analysis on the costs and benefits of different promotion strategies, which can assist the marketing manager in making an informed decision.
Therefore, the correct answer is c) help the marketing manager decide which product promotion to implement.