A Direct Cost Is One Which

question 97

Multiple Choice

A direct cost is one which

• A)involves an actual outlay of cash for a specific cost object.
• B)can be traced to a specific cost object.
• C)cannot be traced to a specific cost object.
• D)is not worth the effort of tracing to a specific cost object.

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Definitions:

New Shares

These are additional shares of stock issued by a company, expanding the total number of shares on the market and diluting existing shareholders' ownership unless they purchase more.

Shareholders of Record

Individuals or entities that are officially registered and listed as the owners of shares in a company as of the record date.

Payable

Refers to the amount of money a company owes to its creditors or suppliers, typically recorded as a current liability on its balance sheet.

Dividend Paid

The cash payment made by a corporation to its shareholders as a distribution of profits.