Shareholders in Frontier Communications Were Not Pleased to Learn That

question 131

Multiple Choice

Shareholders in Frontier Communications were not pleased to learn that the company's market share had changed from 40 to 21 percentage points, a loss of 19 percentage points. What was the percent change in market share?

• A) 52.5% increase
• B) 52.5% decrease
• C) 47.5% increase
• D) 47.5% decrease

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Definitions:

Predetermined Overhead Rate

An estimated rate used to allocate manufacturing overhead to products based on a certain activity, like labor hours or machine hours.

Direct Labor-hours

The sum of working hours of employees directly engaged in producing goods.

Manufacturing Overhead

All indirect costs associated with the production process, such as utilities, maintenance, and management salaries, not directly tied to direct materials or direct labor.

Predetermined Overhead Rate

A rate used in cost accounting to allocate overhead costs based on an estimated activity level.