When the Selling Price of Treasury Stock Is Greater Than

question 43

Multiple Choice

When the selling price of treasury stock is greater than its cost the company credits the difference to

• A) Gain on Sale of Treasury Stock.
• B) Paid-in Capital from Treasury Stock.
• C) Paid-in Capital in Excess of Par.
• D) Treasury Stock.

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Definitions:

Indirect Labor

Workers or labor costs that support the production process but are not directly involved in the creation of the product.

Supplies

Items or materials used in the production process or in the operation of a business.

Fixed Overhead Volume

refers to the portion of fixed overhead costs that is associated with the production volume, used in calculating efficiency and profitability.

Standard Machine-Hours

A measure used in manufacturing to allocate costs to products based on the estimated number of hours the machinery is used.