When a Firm Issues New Stock It

question 10

Multiple Choice

When a firm issues new stock it:

• A)must borrow more from commercial banks.
• B)spreads ownership of the firm.
• C)consolidates ownership within a smaller group of investors.
• D)becomes more dependent on the Federal Reserve.

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Definitions:

Predetermined Overhead Rate

A calculated rate used to assign overhead costs to products or services, based on estimated overhead and estimated activity base.

Job Cost Sheet

A document or record that tracks all the costs associated with a particular job or project, including materials, labor, and overhead expenses.

Predetermined Overhead Rate

A rate used to allocate estimated overhead costs to products or job orders, calculated before the period begins.

Machine-hours

A measure of production output based on the number of hours machines are operated.