Final answer:
Management accountants indeed assist in making decisions about purchasing or in-house manufacturing, which is part of strategic business decisions. As a firm becomes established, the need for personal knowledge of managers decreases due to accessible company information. Investors then become more willing to invest capital.
Step-by-step explanation:
It is TRUE that management accountants may provide information on decisions about whether to purchase a product from an outside supplier or to manufacture it in-house. This type of decision-making is part of the array of strategic choices that a firm has to make. As companies grow and their market presence becomes more stable, detailed knowledge of the managers and their plans becomes less critical due to the increased availability of firm-specific information like products, revenues, costs, and profits. This leads to greater willingness from external investors such as bondholders and shareholders to provide financial capital.
Moreover, decisions such as acquiring another firm, engaging in a merger, or choosing to be acquired, are part of the firm's autonomy in a market-oriented economy. Managers may make errors in judgment regarding these decisions, but the belief in a market economy is that businesses are typically in the best position to determine actions that will attract customers and enhance production efficiency.