Which of the Following Best Defines a Joint Venture

question 49

Multiple Choice

Which of the following best defines a joint venture?

• A) a joint venture is one in which two, or sometimes more, independent companies agree to combine resources in order to achieve a specific objective, usually limited in scope.
• B)A joint venture is one in which two , or sometimes more, independent companies agree to combine resources in order to achieve a specific objective, usually expansive in scope.
• C)A joint venture is one in which two, or sometimes more, independent companies agree to merge into a single firm , usually wider in scope.
• D)A joint venture is one in which two, or sometimes more, independent companies agree to combine resources in order to achieve a specific objective, usually limited in scope .

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Definitions:

Activity-based Costing

A method of allocating overhead and indirect costs based on each product's or service's actual consumption of resources.

Cost Pools

A method used in cost accounting to group collected costs, which simplifies allocating costs to different products, services, or departments.

Activity Rates

Predetermined rates used in activity-based costing to allocate costs to products or services based on their consumption of activities.

Direct Labor Hours

The total hours worked by employees directly involved in the manufacturing process or providing services, used in calculating production costs or rates.