When Corporations Elect to Issue Two or More Shares of Stock

question 368

Multiple Choice

When corporations elect to issue two or more shares of stock to existing stockholders for each share they currently own, they have initiated a(n)

• A) stock split.
• B) dividend spread.
• C) share dividend.
• D) earnings split.

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Definitions:

Unit Product

A specific item or version of a product, distinct in unit size or configuration, produced by a company.

Direct Labor-Hours

The total time workers spend producing a product or performing a service, specifically those directly involved in manufacturing.

Activity-Based Costing

A technique for determining costs that discerns activities in an organization and charges the cost of these activities to all products and services, based on the real amount each consumes.

Unit Product Cost

The total cost incurred to produce a single unit of product, including direct materials, direct labor, and overhead.