The Financial Motives for Merger Activity Include All of the Following

question 24

Multiple Choice

The financial motives for merger activity include all of the following EXCEPT

• A) the portfolio effect.
• B) improved financial posture and greater debt.
• C) the utilization of tax loss carryforwards.
• D) vertical integration.

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Definitions:

Standard Costs

Standard costs are predetermined estimates of the cost to manufacture a single unit or a number of units of a product during a specific time period.

Variance Standard

A method used in budgeting and accounting to analyze the difference between planned financial outcomes and actual results.

Quantity Standard

A predetermined benchmark of the amount of input that should be used in the production of goods or services.

Quantity Variance

The difference between the actual quantity of material used in production and the standard quantity expected to be used.