The Cost of a Merger Equals The

question 70

Multiple Choice

The cost of a merger equals the:

• A) cash paid for the target firm.
• B) increase in total earnings less price paid.
• C) premium paid over the target's value as a separate entity.
• D) sum of cash and stock paid for the target firm.

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Definitions:

Direct Materials Quantity Variance

The variance between the real amount of direct materials consumed in manufacturing and the anticipated standard amount, multiplied by the predetermined cost for each unit.

Actual Quantity

The real or measured amount of inputs used in the production of goods or services, often compared against budgeted or standard quantities for analysis.

Standard Price

A predetermined cost assigned to materials, labor, and overhead, used in budgeting and variance analysis.

Revenue Volume Variance

This reflects the difference between actual revenue and the expected revenue that was based on the budget, often attributed to changes in sales volume.