Klang Limited Has a Direct Ownership Interest of 90% in Liao

question 6

Multiple Choice

Klang Limited has a direct ownership interest of 90% in Liao Limited.Liao Limited has a direct ownership interest of 70% in Meng Limited.The indirect non-controlling interest in Meng Limited is:

• A)70%;
• B)63%;
• C)30%;
• D)7%.

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Definitions:

Target Cost

The maximum amount that can be spent on a product to ensure a desired profit margin is achieved.

Market Dictated Price

The price of a good or service as determined by the supply and demand dynamics in the open market.

Markup Percentage

A percentage added to the cost price of goods to cover overhead and profit.

Total Cost Concept

An accounting principle that sums all costs associated with the production of a good or service, including direct, indirect, fixed, and variable costs.