Which One of the Following Is Not Considered a 'Material

question 64

Multiple Choice

Which one of the following is not considered a 'material' cost?

• A)partially completed motor engines for a motorcycle plant
• B)bolts used in manufacturing the compressor of an engine
• C)rivets for the wings of a new commercial jet aircraft
• D)lumber used to build tables

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Definitions:

Dividend Income

Income received from owning shares in a company, typically distributed from the company's profits.

Target Capital Structure

The optimal mix of debt, preferred stock, and common equity that a company aims to achieve for financing its operations and growth.

Weighted Average Cost

This is often used in the context of 'Weighted Average Cost of Capital (WACC)', which measures a company's cost of capital from all sources weighted by their relative use in the financial structure.

EPS

Earnings Per Share is a company's profit divided by the outstanding shares of its common stock, serving as an indicator of a company's profitability.