Which of the Following Is the Method Used When One

question 29

Multiple Choice

Which of the following is the method used when one company owns more than 50% of the shares of another company?

• A)Market value method
• B)Equity method
• C)Amortized method
• D)Consolidation method

---

Definitions:

Selling Price

The price at which a product or service is offered to the buyer.

Direct Labor Cost

The total cost of all labor directly involved in the production of goods or services.

Activity-Based Costing

A financial allocation practice that designates overhead and indirect costs to related products and services, determined by the activities they necessitate.

Unit Product Cost

The total cost (both fixed and variable) to produce one unit of a product.