A Share Split Is Usually Funded Through Retained Earnings

question 59

True/False

A share split is usually funded through retained earnings.

---

Definitions:

Variable Manufacturing Overhead

Costs in the production process that vary with the level of production output, such as utilities for machinery.

Direct Labour

refers to the workforce directly involved in the manufacture of goods or provision of services.

Fixed Manufacturing Overhead

Indirect manufacturing costs that remain relatively constant regardless of the level of production, such as rent, salaries, and insurance.

Contribution Margin

The amount remaining from sales revenue after variable expenses are deducted, indicating how much contributes to covering fixed costs and generating profit.