Which of the following methods of accounting for business combinations has been viewed as an important motivation for business combinations?
a. Pooling of interests
b. The purchase method
c. The new entity approach
d. Proportionate consolidation
ANSWER: A
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Vanvalkenburg, Inc., manufactures and sells two products: Product Q5 and Product J0. The company has an activity-based costing system with the following activity cost pools, activity measures, and expected activity: EstimatedExpected ActivityActivity Cost PoolsActivity MeasuresOverhead CostProduct Q5Product J0TotalLabor-relatedDLHs$191,7483,0002,8005,800Production ordersorders 70,536300500800Order sizeMHs 295,5924,3004,5008,800 $557,876 The activity rate for the Labor-Related activity cost pool under activity-based costing is closest to:
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