The Following Diagram Represents the Ownership of Issued Share Capital

question 25

Multiple Choice

The following diagram represents the ownership of issued share capital of the companies in a group.What is the ownership interest of A Ltd in D Ltd?

• A) 83.4 per cent
• B) 76.6 per cent
• C) 100 per cent
• D) 86 per cent
• E) None of the given answers.

---

Definitions:

Selling Price

The sum a purchaser spends to acquire a good or service from a vendor.

Absorption Costing

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

Cost-plus Pricing

A pricing tactic in which the final sale price is established by applying a predetermined markup on top of the product's purchase cost.

Return on Investment

A financial ratio measuring the gain or loss generated on an investment relative to the amount of money invested.