Which of the Following Is True

question 14

Multiple Choice

Which of the following is true?

• A)A stockholder owns part of the corporation.
• B)A stockholder has loaned money to the corporation.
• C)A stockholder is owed money by the corporation.
• D)A stockholder must be consulted on all major decisions.

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Definitions:

Weighted-Average Method

An inventory costing method that assigns a cost to inventory on the basis of the weighted average of the costs of similar goods available for sale during the period.

Equivalent Units

An idea in cost accounting that involves distributing costs to goods that are partially finished, transforming them into the equivalent number of completed goods units.

Conversion Costs

The combined costs of direct labor and manufacturing overhead that are incurred to convert raw materials into finished goods.

Materials Costs

Expenses associated with the raw materials used in the manufacture of products.