The Justification for the Benefits of Diversification from Mergers Include

question 28

Multiple Choice

The justification for the benefits of diversification from mergers include all of the following,EXCEPT:

• A)tax loss benefits.
• B)lower cost of debt or increased debt capacity.
• C)direct risk reduction.
• D)liquidity enhancement.

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Definitions:

Direct Labor Efficiency Variance

A measure used in cost accounting to evaluate the difference between the actual hours worked and the standard hours expected for the production achieved.

Direct Materials Price Variance

The difference between the actual cost of direct materials and the expected (or standard) cost of those materials.

DL Wage Variance

The difference between the budgeted wage and the actual wage paid to direct labor employees.

DL Efficiency Variance

The difference between the actual hours worked by direct labor to produce goods and the expected (or standard) hours, multiplied by the standard labor rate.