A Simple Capital Structure Consists of

question 75

Multiple Choice

A simple capital structure consists of

• A) only preferred stock.
• B) common stock outstanding and possibly nonconvertible preferred stock.
• C) common stock and common stock options only.
• D) preferred stock and preferred stock options.

---

Definitions:

Direct Labor Hours

The total hours of work directly contributed by employees towards the production of goods or services, which can directly be attributed to a specific product or service.

Allocated

Assigned or designated resources (such as costs or revenues) to a specific segment, project, or period.

Plantwide Factory Overhead Rate

A single overhead absorption rate used throughout a manufacturing facility to allocate indirect costs to products.

Overhead

Overhead refers to ongoing business expenses not directly attributed to the production of goods or services, such as rent, utilities, and administrative costs.