Which Three of the Following Are Types of Preference Share

question 25

Multiple Choice

Which three of the following are types of preference share?

• A) Authorised
• B) Cumulative
• C) Participating
• D) Convertible

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Definitions:

Conversion Costs

The costs incurred in the process of converting raw materials into finished goods, typically including direct labor and manufacturing overhead.

Cutting Department

A specific section within a manufacturing facility where materials (often fabric) are cut to size before being assembled into final products.

Equivalent Unit

A concept in cost accounting used to apportion costs among finished goods and goods in process, based on work completed.

Process Costing

A costing method used for homogeneous products, allocating costs based on the processes or departments through which the products pass.