List and Briefly Describe the Method Used to Account for Investments

question 32

Essay

List and briefly describe the method used to account for investments in equity securities with more than 50% ownership.

---

Definitions:

Service

The act of providing assistance or benefits to customers or clients without the sale of tangible goods.

Price Variances

A measurement of the difference between the actual cost of a good or service and its expected cost.

Quantity Variances

Quantity variances are differences between the expected and actual quantities of inputs (materials, labor) used in the production process or during a specific period.

Direct Labor

The wages or salaries paid to employees who are directly involved in the production process of goods or services.