10.

The main aim of management accounting is to help management in its functions of

_________.

a) planning

b) directing

c) controlling

d) all of the above

Answer: all of the above

11. _______ is the act of choosing between manufacturing a product in house or

purchasing it from an external supplier.

a) Pricing decision

b) Make or buy decision

c) Budgeting decision

d) EOQ

Answer: Make or buy decision

12. In a make or buy decision, the most important factor(s) to consider is ________.

a) cost of production

b) availability of production capacity

c) marketing of the product

d) Both A & B

Answer: Both A & B

13. GAAP in financial accounting stands for _______

a) Globally Accepted Accounting Principles

b) Globally Accepted Accounting Practices

c) Generally Accepted Accounting Principles

d) Generally Accepted Accounting Provisions

Answer: Generally Accepted Accounting Principles

14. An enterprise may decide to purchase the product rather than producing it if is
_________.

a) cheaper to buy than make

b) cheaper to make than buy

c) costlier to buy than make

d) Both B & C

Answer: cheaper to buy than make

15. A ________ is the catalog of items one should sell at their business.

a) Price mix

b) Product Mix

c) Distribution mix

d) Promotion Mix

Answer: Product Mix

16. Optimizing product mix can ________ the profits.

a) minimize

b) stagnant

c) maximize

d) neither minimize nor maximize

Answer: maximize