An Activity That Has a Direct Cause-Effect Relationship with the Resources

question 95

Multiple Choice

An activity that has a direct cause-effect relationship with the resources consumed is a(n)

• A) cost driver.
• B) overhead rate.
• C) cost pool.
• D) product activity.

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Definitions:

Stock Split

A corporate action in which a company divides its existing shares into multiple shares to boost the liquidity of the shares, though the overall value of the company does not change.

Dividend Decisions

The process by which a company's board of directors decides the amount and timing of payouts to shareholders from earnings.

Reverse Split

A reverse split is a stock market maneuver in which a company reduces the number of its existing shares to increase the share price without changing the company's market capitalization.