Which of the Following Statements Is Correct

question 13

Multiple Choice

Which of the following statements is correct?

• A) The non-controlling interest cannot have the majority of the equity in a subsidiary since it would not then be a non-controlling interest.
• B) The non-controlling interest cannot have the majority of voting power in a subsidiary since a majority would give that interest the power to control a subsidiary.
• C) The non-controlling interest may have the majority of the equity and a majority of the voting power in a subsidiary but still remain a non-controlling interest.
• D) None of the above.

Explain break-even analysis and its different types (accounting, cash, and financial).

Identify the significance of contribution margin in financial decision-making.

Understand the concept and process of scenario analysis.

Comprehend the usefulness and application of simulation analysis in project evaluation.

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Definitions:

Actual Results

The actual outcomes or figures achieved, compared against forecasts or budgeted amounts.

Raw Materials Price Variance

The difference between the actual cost and the standard cost of raw materials used in production, reflecting price fluctuations.

Standard Cost System

An accounting system that uses predetermined costs for products or services to compare against actual costs for performance evaluation.

Actual Results

The real outcomes or final figures that have been achieved by a business after a specific period, which can be compared against forecasts or budgets.