Which of the Following Statements Is True of Forming C

question 68

Multiple Choice

Which of the following statements is true of forming C corporations?

• A) They include preferred stockholders who vote in stockholders' meetings.
• B) They require the adoption of corporate bylaws.
• C) They are cheaper than forming a partnership.
• D) They can be formed through a verbal agreement.

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Definitions:

Variable Costing

An accounting method that only includes variable production costs (direct materials, direct labor, and variable manufacturing overhead) in product costs, with fixed overhead expenses charged against income in the period they are incurred.

Variable Costing

A methodology in accounting that includes only fluctuating production costs (such as direct materials, direct labor, and variable manufacturing overhead) in the pricing of items.

Unit Product Cost

The total cost associated with manufacturing a single unit of product, inclusive of materials, labor, and overhead.

Net Operating Income

The profit a company has after subtracting its operating expenses from its revenue, excluding interest and taxes.