The Combination of Two or More Companies That Results in One

question 93

Multiple Choice

The combination of two or more companies that results in one of the corporations having a voting control of one or more of the other companies is a

• A) congeneric formation.
• B) consolidation.
• C) merger.
• D) holding company.

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Definitions:

Direct Materials

Raw materials that are directly traceable to the production of a specific product or service.

Work in Process Inventory

Work in Process Inventory represents the cost of incomplete goods in the manufacturing process, including labor, raw materials, and overhead costs.

Equivalent Units

A concept used in cost accounting to express the amount of work done by various units of production collectively, taking into account both complete and partially complete units.

Direct Labor

The wages and other costs for labor directly involved in the production of goods or provision of services.