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:

Materials Price Variance

The difference between the actual cost of raw materials and the expected cost at standard prices.

Standard Quantity

The expected or predetermined amount of materials or input needed to produce a single unit of product, used for manufacturing budgeting and variance analysis.

Standard Price

A predetermined cost that companies use for budgeting and assessing the performance of actual costs.

Actual Materials Purchased

The total quantity and cost of raw materials bought during a period for the purpose of production.