Which One of the Following Is Most Likely to Increase

question 133

Multiple Choice

Which one of the following is most likely to increase the Herfindahl index of a particular industry?

• A)a conglomerate merger
• B)a vertical merger
• C)a price-fixing arrangement among all the industry firms
• D)a horizontal merger

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Definitions:

Prefab Barns

Pre-engineered buildings designed for agricultural or storage purposes, which come in kits for quick and easy assembly.

Traditional Costing

An accounting method that allocates overhead costs to products based on a predetermined rate, often using direct labor hours or machine hours as the base.

Activity-Based Costing

A costing technique that assigns costs to products or services based on the activities and resources that contribute to the production or delivery.

Activity Rate

In cost accounting, it refers to the cost driver rate used in activity-based costing to allocate overhead costs to products or services based on their consumption of activities.