Cash Dividends Are Affected by Three Significant Dates

question 90

Essay

Cash dividends are affected by three significant dates. On which of the dates do dividends become a legal obligation of a corporation?

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Definitions:

Variable Manufacturing Overhead

Overhead costs that fluctuate with the level of production, such as utilities or raw materials.

Standards

Predetermined benchmarks or norms used for measuring performance, costs, and efficiency in production.

Variable Overhead Efficiency Variance

This measures the difference between the actual variable overhead costs incurred and the standard costs expected for the actual production level achieved, pertaining to efficiency in managing variable overheads.

Machine-Hours

The total operational hours recorded for all machines within a production process, serving as a basis for calculating machine-related costs and efficiencies.