Which of the Following Statements Is INCORRECT

question 23

Multiple Choice

Which of the following statements is INCORRECT?

• A) Officers of a corporation do not have to be shareholders of a corporation.
• B) Shareholders of a corporation can only vote for the election of directors if they appear in person at the shareholders' meeting.
• C) Shareholders both appoint and can remove directors of a corporation.
• D) Shareholders will get paid last in the event of a bankruptcy.
• E) Directors can both appoint and remove officers of a corporation.

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Definitions:

Direct Labor-Hours

The totality of hours devoted by workers directly engaged in the fabrication of products.

Manufacturing Overhead

All indirect costs associated with the manufacturing process, including utilities, rent, and salaries for non-direct labor, that are not directly traceable to specific units produced.

Overapplied Manufacturing Overhead

A scenario in which the allocated manufacturing overhead costs exceed the actual overhead costs incurred.

Work in Process Inventory

Items partly finished in manufacturing but not yet ready for sale, representing a stage between raw materials and final products on the balance sheet.