7. The amount by which an item contributes towards covering fixed cost and providing for profit is known as: A. gross profit B. gross margin C. contribution margin D. net margin 8. Managerial Accounting information: A. pertains to an entity and is highly aggregated B. pertains to subunits of the entity and may be very detailed C. is prepared only once a year D. is constrained by the requirements of IFRS 9. Which of the following is TRUE about sunk costs? Sunk costs: A. are relevant costs B. are incremental costs C. have future implications D. are ignored when making decisions 10.Maine Company produces three products -- A, B, \& C -- with the following characteristics: The company has only 2,000 machine-hours available each month. If demand exceeds the company's capacity, in what sequence should orders be filled if the company wants to maximize its total contribution margin? A. Orders for A first, B second, and C third B. Orders for A first, C second, and B third C. Orders for A first, B second, and C third D. Orders for A first and no orders for B or C. 11. Which of the following adequately describes Management Accounting? A. The process of identifying, measuring and analysing information B. The process of identifying, measuring and accumulating information developed for managers C. The process of identifying, measuring and accumulating information developed for external users