Which type of information does management accounting provide?

Management accounting provides both financial and non-financial information that is crucial for internal decision-making within an organization. This type of information supports management in planning, controlling, and making informed decisions aimed at improving the efficiency and effectiveness of operations.

Financial information includes metrics such as budget variances, cost analysis, and profitability, while non-financial information might encompass operational metrics like customer satisfaction indicators, employee performance data, and market trends. By integrating diverse data types, management accounting enhances the overall strategic planning and operational processes of a business, enabling managers to make well-rounded decisions that go beyond just financial metrics.

The other types of information listed are more limited in their application. For example, information intended solely for external stakeholders does not provide the comprehensive insight needed for internal decision-making. Similarly, legal compliance information is primarily focused on meeting regulatory requirements rather than aiding in management's operational decisions. Lastly, relying exclusively on historical financial data may limit management's ability to anticipate and respond to future challenges effectively. Therefore, the comprehensive nature of the insights provided by management accounting makes B the most accurate choice.