Which Acquisition Would Be Considered the LEAST Related

question 18

Multiple Choice

Which acquisition would be considered the LEAST related?

• A) A candy manufacturer purchases a chemical laboratory specializing in food flavorings.
• B) A chain of garden centers acquires a landscape architecture firm.
• C) A hospital acquires a long-term care nursing home.
• D) An upscale "white-tablecloth" restaurant chain acquires a travel agency.

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Definitions:

Step-down Method

An allocation technique used in accounting to distribute overhead costs among various cost centers.

Personnel Department

A division within a company that manages human resources and employee-related matters.

Number Of Employees

The aggregate number of people employed by a company, encompassing both full-time and part-time employees.

Direct Method

A costing method that assigns service departments' costs directly to production departments without going through multiple allocations.