Accounting 26th Edition by Carl Warren ,Jim Reeve ,Jonathan Duchac

Exercise 29

Financial versus managerial accounting
The following statement was made by the vice president of finance of The Muppet Company: "The managers of a company should use the same information as the shareholders of the firm. When managers use the same information in guiding their internal operations as shareholders use in evaluating their investments, the managers will be aligned with the stockholders' profit objectives."
Respond to the vice president's statement.