A Proprietary Company Is Similar to a Public Company in That

question 61

Multiple Choice

A proprietary company is similar to a public company in that:

• A)It is privately owned.
• B)It cannot have more than 50 non-employee shareholders.
• C)It is prohibited from selling its shares to the public.
• D)It must have a statutory minimum number of directors and members.

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Definitions:

Equivalent Units

A method used in cost accounting to express partially completed goods in terms of complete units.

Units Finished

The quantity of completed products available for sale or distribution at the end of an accounting period.

Conversion Costs

Combined costs of direct labor and manufacturing overhead incurred to convert raw materials into finished goods.

Conversion Cost

The combined costs of direct labor and overhead expenses incurred to convert raw materials into finished products.