When Sears and Kmart, Two Retail Firms of Relatively Equal

question 94

Multiple Choice

When Sears and Kmart, two retail firms of relatively equal size in the United States, agreed to combine their assets, this was an example of a(n)

• A) joint venture.
• B) acquisition.
• C) merger.
• D) equity agreement.

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Definitions:

Activity Base

A measure used as a foundation for allocating costs in activity-based costing, representing transactions or events that cause costs to be incurred.

Payroll Checks

Checks issued to employees as payment for their services, representing wages or salaries.

Activity Base

A measure or factor used as a basis for allocating costs in managerial accounting, often related to the volume of production activity or the level of service provided.

Service Department Expenses

Costs incurred by support departments within an organization, like HR and maintenance, which do not directly contribute to revenue but are necessary for operations.