Important Advantages of a Holding Company Structure Include

question 80

Multiple Choice

Important advantages of a holding company structure include

• A) savings in personnel and overhead expenses associated with a small corporate office.
• B) a high level of awareness at the corporate office of issues facing individual divisions.
• C) a high level of control of division executives by executives at the corporate level.
• D) gaining synergistic benefits across businesses.

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Definitions:

Predetermined Overhead Rate

A rate used to apply manufacturing overhead to products or job orders, calculated before the period begins based on estimated costs and activity levels.

Direct Labor-Hours

Overall work duration of employees directly involved in the production process.

Machine-Hours

A measure of production time that indicates the total hours a machine is in operation during a specific period.

Forming Department

A segment within a manufacturing facility where raw materials are shaped and formed into products.