Match the Terms to the Definitions

question 175

Multiple Choice

Match the terms to the definitions.
-The preferred stock feature which provides for preferred stock to be exchanged for common stock.

• A)Cumulative dividend preference
• B)Participating dividend preference
• C)Conversion privilege
• D)Call provision
• E)Stock split
• F)Stock dividend
• G)Retained earnings
• H)Outstanding shares
• I)Issued shares
• J)Retired shares
• K)Treasury stock
• L)Paid-in capital in excess of par

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Definitions:

Fixed Overhead

Regular, ongoing expenses that are not affected by changes in production level or output, such as rent and insurance.

Variable Overhead

Costs that change in proportion to the level of production activity or volume, such as power for manufacturing equipment.

Direct Labor

The labor costs directly associated with the production of goods or services, which includes wages for workers who physically contribute to the finished product.

Direct Materials

Raw materials that can be directly associated with the production of specific goods or services and are included in the cost of the finished product.