The Per Share Amount Normally Assigned by the Board of Directors

question 88

Multiple Choice

The per share amount normally assigned by the board of directors to a small stock dividend is

• A) the market value of the stock on the date of declaration.
• B) the average price paid by stockholders on outstanding shares.
• C) the par or stated value of the stock.
• D) zero.

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Definitions:

Total Physical Units

Total physical units refer to the total count of individual units of product produced by a company in a given period of time.

Units Completed

The number of finished products that have been completed within a specific period in a manufacturing process.

Conversion Costs

The combined costs of direct labor and manufacturing overhead, which are incurred to convert raw materials into finished products.

Equivalent Units

A method used in process costing that converts partially completed units into a smaller number of fully completed units.