The Recognized Methods for Consolidating the Financial Reports of an MNC

question 5

Multiple Choice

The recognized methods for consolidating the financial reports of an MNC are

• A)short/long term method,current/future method,flexible/inflexible method,and economic/noneconomic method.
• B)current/noncurrent method,monetary/nonmonetary method,short/long term method,and current/future method.
• C)current/noncurrent method,monetary/nonmonetary method,temporal method,and current rate method.
• D)temporal method,current rate method,flexible/inflexible method,and economic/noneconomic method.

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Definitions:

Company Performance

An assessment of how well a company is achieving its financial and operational objectives, commonly measured through financial indicators, sales metrics, and profitability ratios.

Absorption Costing

Definition: An accounting method that includes all manufacturing costs - direct materials, direct labor, and both variable and fixed manufacturing overhead - in the cost of a product.

Inventory

Inventory refers to raw materials, work-in-process, and finished goods that are held by a company in anticipation of eventual sale.

Controllable Costs

For a level of management, the costs that can be influenced (increased, decreased, or eliminated) by management at that level.