Earnings Per Share Is an Indication of How Much

question 32

Multiple Choice

Earnings per share is an indication of how much

• A) the company paid as dividends for each share of stock.
• B) the company earned for each share of outstanding common and preferred stock.
• C) the company earned for each share of outstanding common stock.
• D) cash the company has for each share of all outstanding stock.

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Definitions:

Machine Hours

A measure used in costing to allocate costs based on the number of hours a machine is operated.

Direct Labor Hours

A measure of the total hours worked directly on producing goods, typically used in manufacturing and cost accounting.

Departmental Overhead Rate

A method used to allocate indirect costs to specific departments based on their respective activities or usage.

Cutting Department

A division in manufacturing where materials are cut to size or shape before moving to the next production phase.