To Reduce Risk of Vulnerability to Downturns in Single Markets

question 96

Multiple Choice

To reduce risk of vulnerability to downturns in single markets, corporations would consider what type of merger?

• A) a horizontal merger
• B) a conglomerate merger
• C) a vertical merger
• D) a downward merger

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Definitions:

Manufacturing Overhead Applied

The amount of manufacturing overhead costs allocated to each unit of product based on a predetermined overhead rate.

Overapplied

This term relates to a situation where the allocated costs in accounting exceed the actual indirect costs.

Underapplied

A situation where the allocated overhead cost is less than the actual overhead cost incurred.

Work in Process Account

An account used in accounting to track the costs associated with the production of goods that are not yet complete.