The Main Difference Between a Subsidiary and an Associate Company

question 30

Multiple Choice

The main difference between a subsidiary and an associate company is the:

• A)number of investors.
• B)level of control the parent company has.
• C)annual turnover.
• D)size of the company.

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Definitions:

Departmental Overhead Rates

Different rates used to allocate overhead costs to products or job functions, based on department-specific activities.

Direct Labor Hours

The total hours worked by employees who are directly involved in the production process of goods or services.

PVC Fencing

A fencing material made from polyvinyl chloride, known for its durability, weather resistance, and low maintenance requirements.

Plantwide Overhead Rate

A unified rate employed across the entire manufacturing facility to allocate overhead expenses to products.