When a Firm Undertakes a Merger in Order to Eliminate

question 61

Multiple Choice

When a firm undertakes a merger in order to eliminate redundant functions or increase market share, this is an example of

• A) friendly merger.
• B) strategic merger.
• C) a financial merger.
• D) hostile takeover.

---

Definitions:

Material Quantity Variance

The difference between the actual quantity of materials used in production and the standard quantity expected, multiplied by the standard cost per unit.

Standard Quantity (SQ)

Standard Quantity refers to the amount of materials or inputs that should be used in the production of a good or service under normal efficiency conditions.

Actual Quantity (AQ)

The true or real amount of materials, labor, or overhead used in the production process.

Standard Price (SP)

A predetermined cost that companies expect to pay for materials, labor, and other costs under normal conditions.