All of the Following May Be Included in the Numerator

question 120

Multiple Choice

All of the following may be included in the numerator of the debt-to-equity ratio except:

• A)Shareholder loans.
• B)Retractable preferred shares.
• C)Short-term bank loans.
• D)Current portion of long-term debt.

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Definitions:

Plantwide Predetermined Overhead Rate

A single overhead rate calculated by dividing total estimated manufacturing overhead costs by an estimated allocation base for the entire factory, often used in simpler costing systems.

Job-Order Costing System

An accounting system that assigns costs to specific jobs or batches of goods, typically used in manufacturing or service industries where each job is unique.

Direct Labor-Hours

A measurement of the time workers spend directly manufacturing a product, often used to allocate manufacturing overhead.

Fixed Manufacturing Overhead Cost

Overhead costs related to manufacturing that remain constant regardless of the level of production, such as factory rent and salaries of supervisors.