Prior to Declaring a 4-For-1 Stock Split,Carbello Enterprises' Stock Sold

question 324

Multiple Choice

Prior to declaring a 4-for-1 stock split,Carbello Enterprises' stock sold for $44 a share.Immediately after the stock split,the value of a share of Carbello's stock should be ________ per share.

• A)$11
• B)$44
• C)$48
• D)$176

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Definitions:

Activity Rate

A measure used in activity-based costing to assign costs to activities based on their use of resources.

Activity-Based Costing

A methodology for costing that detects operations in a company and assigns the costs of these operations to all products and services in proportion to their true use.

Activity Cost Pools

A method in managerial accounting where costs are aggregated according to the activities that incur them, for more accurate allocation.

Product Units

Individual items or outputs produced by a manufacturing or production process.