Which of the Following May Be an Advantage of a Pursuing

question 21

Multiple Choice

Which of the following may be an advantage of a pursuing a strategic buyer in the M&A process?

• A)Less financing risk
• B)Operating leverage
• C)Ability to realize synergies
• D)Both A and C

---

Definitions:

Fixed Overhead Budget Variance

The difference between the actual fixed overhead costs incurred and the budgeted or expected fixed overhead costs.

Standard Cost System

A cost accounting system where predetermined costs are used for valuing inventory and measuring performance.

Direct Labor Costs

The total of all wages, benefits, and taxes paid to employees who are directly involved in the manufacturing of products.

Work in Process

Goods that are in various stages of the production process but are not yet completed.