Exhibit 10-13 -Consider Exhibit 10-13. If Two Firms Each Produced 500 Units

question 181

Multiple Choice

Exhibit 10-13
-Consider Exhibit 10-13. If two firms each produced 500 units, the total cost of supplying 1,000 units would be

• A) $6
• B) $4,000
• C) $4
• D) $3,000
• E) $6,000

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Definitions:

Repriced Option

An adjusted stock option whose original terms have been modified, typically to reset the option's exercise price.

Share-based Payment

Transactions in which an entity receives goods or services as consideration for its equity instruments or by incurring liabilities for amounts based on the price of the entity's shares.

AASB 2

The Australian Accounting Standards Board standard that specifies the financial reporting requirements for entities dealing with share-based payment transactions.

Incremental Fair Value

The additional value that is estimated to arise from a particular transaction or event over the current fair value of an asset or liability.