ATR's Budgeted Product Costs for the Third Quarter of 2010

question 52

Multiple Choice

ATR's budgeted product costs for the third quarter of 2010 were based on an expected volume of 1,500 units. The budgeted unit costs appear below: ATR's total budgeted product cost for the third quarter of 2010 was

• A) $16,500
• B) $12,000
• C) $4,500
• D) None of the above

---

Definitions:

Consolidated Financial Statements

Financial statements that show the financial position and results of operations of a parent company and its subsidiaries as a single entity.

Cost Method

The Cost Method is an accounting approach where investments are recorded at their acquisition cost, without adjustment for changes in market value.

Equity Method

An accounting technique used to record investments in which the investor has significant influence over the investee but does not control it outright, usually indicated by owning 20% to 50% of the investee's equity.

Controlling Interest

Ownership of a portion of a company that is large enough to control or influence decision-making and operations.