If You Own 1,000 Shares of Common Stock of a Firm

question 46

Multiple Choice

If you own 1,000 shares of common stock of a firm and there are five directors being elected, what is the maximum number of votes you can cast for a particular director under majority voting?

• A)5,000
• B)1,000
• C)200
• D)5

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Definitions:

Direct Materials

These are raw materials that can be directly identified with the finished product in terms of cost and physical involvement.

Factory Overhead

All costs related to production that are not direct materials or direct labor costs.

Conversion Cost

Conversion cost is the combination of labor and manufacturing overhead costs incurred to convert raw materials into finished goods.

Equivalent Unit

A concept used in process costing that converts partially completed units into a number of fully completed units.