A Dividend Reinvestment Scheme Is

question 45

Multiple Choice

A dividend reinvestment scheme is:

• A)an offering of new issues of shares or bonds.
• B)the date on which a company ceases to effect transfers of its shares.
• C)the amount that must be paid per share to buy a new issue.
• D)a scheme in which shareholders are allowed to reinvest dividends into shares.

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Definitions:

Variable Costing

A bookkeeping procedure that adds only variable production fees (including direct materials, direct labor, and variable manufacturing overhead) into the costs associated with products.

Unit Product Cost

The total cost to produce a single unit of product, including direct materials, direct labor, and allocated overhead.

Direct Labor Cost

The expense of labor that can be directly attributed to the production of goods or services.

Net Operating Income

A company's revenue minus its operational direct and indirect costs, excluding taxes and interest.