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Problem 1: Which of the following statements is true about the use of management accounting information in nonprofit organisations?
Select one:
Option a. Universities do not exist strictly to earn profit for shareholders, so management accounting information is not vital to their operations.
Option b. Because nonprofit organisations - hospitals, educational institutions, charities - do not exist with a profit motive, they do not use management accounting principles.
Option c. Unlike other nonprofits, hospitals (which exist with a focus on financial results in addition to health metrics) do not make use of management accounting.
Option d. Because managers of nonprofit organisations need timely and relevant information to make decisions, management accounting is vital to these organisations.
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