Recall the Application About the 1998 Merger Between Pennzoil and Quaker

question 71

Multiple Choice

Recall the Application about the 1998 merger between Pennzoil and Quaker State to answer the following question(s) . The merger resulted in a company with a market share of 38 percent: 29 percent from Pennzoil and 9 percent from Quaker State.
-Recall the Application. A recent study concluded that following the merger between Pennzoil and Quaker State, the market share of Pennzoil products ________ and the market share of Quaker State products ________.

• A) increased; increased
• B) increased; decreased
• C) increased; did not change
• D) did not change; increased

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Definitions:

Ending Inventory

The total value of goods available for sale at the end of an accounting period.

Contribution Margin

The amount remaining from sales revenue after variable expenses have been deducted; this contribution covers fixed expenses and generates profit.

Absorption Costing

An accounting method that includes all direct costs and allocated overheads in the cost of a product or service, as opposed to variable costing which excludes certain overheads.

Ending Inventory

The total value of goods available for sale at the end of an accounting period or fiscal year.