In January 2003, the FASB Released Interpretation 46, "Consolidation of Variable

question 31

Multiple Choice

In January 2003, the FASB released Interpretation 46, "Consolidation of Variable Interest Entities," which:

• A)re-emphasized the need for 50% stock ownership to exert effective control.
• B)expanded U.S.GAAP to consider effective control rather than legal control for consolidated financial statements.
• C)took a "form-over-substance" approach to define control in determining requirements for consolidated financial statements.
• D)defined effective control as ownership of 30% or more of another entity's voting shares.

Understand the role of interpersonal communication in forming and affecting relationships.

Distinguish between various types of interpersonal relationships within a professional context.

Appreciate the significance of nonverbal cues in communication and conflict.

Recognize the importance of emotional intelligence in managing personal conflicts and negotiations.

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Definitions:

Variable Costing

A method of costing that includes only variable production costs — costs that change with the level of output — in the calculation of unit costs.

Production Planning

The process of forecasting, planning, and controlling the quantity, timing, and quality of production activities.

Absorption Costing

A method of accounting that incorporates all costs associated with manufacturing (such as direct materials, direct labor, and all overhead expenses, whether fixed or variable) into the product's cost.

EBITDA

Earnings Before Interest, Taxes, Depreciation, and Amortization, a measure used to evaluate a company's profitability without the effects of financing and accounting decisions.