Where Would the Amortization of the Acquisition Differential Be Reflected

question 52

Multiple Choice

Where would the amortization of the acquisition differential be reflected on Kho's Consolidated Income Statement?

• A)It would be reflected through non-controlling interest in earnings.
• B)It would be reflected through other expenses.
• C)It would be reflected through cost of sales.
• D)It would be reflected as a reduction of sales.

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Definitions:

Variable Costs

Costs that change in relation to the level of goods or services produced, such as materials and labor, in contrast to fixed costs.

Total Revenue

The total income generated from the sale of goods or services before any expenses are subtracted.

Variable Costs

Expenses that change in proportion to the activity of a business, such as costs for raw materials and labor.

Fixed Costs

Expenses that remain constant regardless of the amount of production or output, like lease payments or wages.