Which One of the Following Statements About Ordinary Shares Is

question 38

Multiple Choice

Which one of the following statements about ordinary shares is correct?

• A) Each share of ordinary share entitles the holder to an equal ownership position and an equal vote in the corporation.
• B) Ordinary shares typically provide higher levels of current income than do similar grade corporate bonds.
• C) Each share of stock has a specified maturity date.
• D) Ordinary shares give shareholders first title to a share of the company's earnings, prior to other corporate obligations.

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Definitions:

Standard Direct Labor-Hours

The predetermined amount of labor time estimated or expected to produce a unit of output, used for budgeting and measuring efficiency.

Labor Rate Variance

The difference between the actual cost of labor and the budgeted or standard cost of labor.

Direct Materials Purchases Variance

Direct materials purchases variance analyzes the difference between the actual cost of materials purchased and the budgeted cost, impacting budgeting and cost control.

Variable Overhead

Those overhead costs that vary in total directly and proportionately with changes in production or activity level.