A Business Merger Differs from a Business Consolidation Because

question 37

Multiple Choice

A business merger differs from a business consolidation because

• A)a merger dissolves all but one of the prior entities,but a consolidation dissolves all of the prior entities and forms a new corporation.
• B)a consolidation dissolves all but one of the prior entities,but a merger dissolves all of the prior entities.
• C)a merger is created when two entities join,but a consolidation is created when more than two entities join.
• D)a consolidation is created when two entities join,but a merger is created when more than two entities join.

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Definitions:

Standard Hours Allowed

The amount of time that should be spent to produce a certain amount of goods or services, according to predetermined standards.

Overhead Volume Variance

A measure used in cost accounting to determine the difference between the allocated overhead costs and the actual overhead costs incurred.

Fixed Overhead Rate

A predetermined rate used to assign fixed overhead costs to cost objects, based on a specific activity level or base.

Normal Capacity Hours

The amount of production capability a company can expect to achieve under normal circumstances over a specific period.