A Consolidated Entity Is Defined As

question 18

Multiple Choice

A consolidated entity is defined as:

• A) the company and its subsidiaries at the end of the financial year. Subsidiaries are companies and trusts as defined in terms of the Corporations Act.
• B) a combined entity constituted by a parent entity and its controlled entities.
• C) a trust or partnership registered as a management investment scheme and all the entities it controls at the end of the financial year.
• D) the parent company, non-controlling interests and subsidiaries owned by that parent company as at the end of the financial year.

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Definitions:

Job-Order Costing

An accounting method that assigns costs to specific production units or jobs, useful for customized orders.

Direct Labor-Hours

Sum of the hours expended by employees directly participating in the manufacturing operations.

Predetermined Overhead Rate

A rate used to allocate manufacturing overhead to individual products or job orders based on a consistent activity measure, calculated prior to the period in which it is used.

Machine-Hours

A measure of production time, indicating how many hours machines are operated in the manufacturing process.