Which Is Not One of the Three Elements of Control

question 3

Multiple Choice

Which is not one of the three elements of control?

• A)the ability to use power over the investee to affect the amount of the investor's returns;
• B)holding majority voting rights;
• C)power over the investee;
• D)exposure,or rights,to variable returns from involvement with the investee.

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Definitions:

Assembly

The process of putting together various components to create a finished product.

Predetermined Overhead Rates

The estimated overhead cost per unit of the allocation base, calculated at the beginning of the period.

Machine-Hours

The total amount of time machines are operated to produce goods.

Manufacturing Departments

Divisions within a manufacturing organization, each specializing in different stages of the production process, from raw materials processing to finished products.