Which Statement Is Correct About Earnings Per Share (EPS)

question 43

Multiple Choice

Which statement is correct about earnings per share (EPS) ?

• A)A company's total earning is more meaningful than its EPS.
• B)EPS represents the total amount of earnings of a company.
• C)EPS represents an ordinary share's interest in the company.
• D)The EPS is directly correlated with the company's stock price.

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Definitions:

Standard Cost

A predetermined cost of manufacturing, selling, or any other operation under normal conditions.

Standard Cost

A predetermined cost of manufacturing a single unit or a number of units during a specific period under normal conditions.

Budgeted Cost

An estimate of expenses or costs that are planned for a specific period in the future.

Production Estimates

These are predictions or forecasts about the volume of production expected to be achieved in a specified future period.