On the Dividend Record Date

question 119

Multiple Choice

On the dividend record date,

• A) a dividend becomes a current obligation.
• B) no entry is required.
• C) an entry may be required if it is a share dividend.
• D) Dividends Payable is debited.

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Definitions:

Variable Overhead Efficiency Variance

A financial metric indicating the difference between the actual variable overhead costs incurred and the expected (or standard) costs, based on the efficient use of variable inputs.

Variable Manufacturing Overhead

Costs that fluctuate with the level of production output, such as utilities or materials that vary with production volumes.

Direct Labor-hours

The total amount of time spent by workers directly involved in the manufacturing of a product.

Variable Overhead Standards

The budgeted or standard costs associated with variable overheads, which are expected to change in proportion to different levels of production activity.