Which of the Following Would Not Have an Influence on the Optimal

question 57

Multiple Choice

Which of the following would not have an influence on the optimal distribution policy?

• A) The possibility of accelerating or delaying investment projects.
• B) A strong shareholders' preference for current income versus capital gains.
• C) Bond indenture constraints.
• D) The costs associated with selling new common stock.
• E) All of the statements above can have an effect on dividend policy.

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Definitions:

Activity Cost Pools

A grouping of all costs associated with a particular activity, used in activity-based costing to allocate costs more accurately.

Machine-Hours

A measure of the amount of time a machine is operated for the purpose of producing goods.

Batches

Distinct groups of items or quantities produced or processed at the same time.

Overhead Cost

All costs on the income statement except for direct labor, direct materials, and direct expenses. Overhead costs relate to business operations and are not directly tied to a specific product or activity.