Group 2: Answer to the questions given.

Name: Lara Mae Carrera, Dannalyn Laron, and Jessa Ramirez

1.(Marifer): Why standard cost method uses expected costs instead of actual costs?
2.(Marifer): What are the methodologies that can be used in calculating asset values?
3.(Vernadette): When using the asset valuation in company merger, how or what will be the effect in
the industry?
Answer: The process of determining the current worth of a company's asset is known as asset
valuation. This procedure is frequently used as part of a larger corporate valuation or before
purchasing, selling, or insuring an asset. A corporate merger, on the other hand, is the merging of two
different legal entities into a single new legal entity. Companies will buy or merge with other
companies in the goal of widening their customer base, lessening marketplace competition, and
providing value that is higher than what each company can provide on its own. Both companies will
evaluate who has the larger asset and who has the smaller asset through asset valuation. A larger
corporation will buy the assets of a smaller corporation. The new company's overall expenses will
decrease and earnings will increase as a result of consolidating operating costs.
Every industry is affected by mergers and acquisitions, from technology companies and banks to
industrial manufacturers and healthcare organizations. However, there are risks that can lead to a failed
merger and acquisition deal, such as overpaying or failing to properly integrate the two companies.
This failure can have a negative impact not only on shareholders, but also on employees, clients, and
other related parties whose interests are directly affected by the loss of value generated by the synergy.
Furthermore, mergers and acquisitions can have an impact on a company's capital structure, stock
price, and future growth prospects, among other things.
4. (Vernadette): In computing EPS, when a stock dividends and stock splits occur, why do we need
to restate the issuance of stock dividends and stock splits?
Answer: A share split is a transaction in which the original shares are cancelled and replaced by a
decrease or increase in the par value or stated value. When a change in the capital structure is caused
by share dividends or splits, the increase or decrease in the number of shares must be recorded
retroactively. To put it another way, share dividends or splits are considered a change from the date the
initial shares were issued. Even if a share issue occurred in previous years, it should be presented in
the current period, as if it occurred at the earliest possible time. Because if both financial statements
aren't treated retroactively, they won't be comparable. As a result, the users will find your financial
statement useless. We're preparing FS to assist people by making decisions and understanding what's
going on in the business.