Which of the Following Is an Example of Restructuring the Firm

question 105

Multiple Choice

Which of the following is an example of restructuring the firm?

• A)dividends are increased from $1 to $2 per share.
• B)a new investment increases the firm's business risk.
• C)new equity is issued and the proceeds repay debt.
• D)a new board of directors is elected to the firm.

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Definitions:

Labor Quantity Variance

The difference between the actual hours worked and the standard hours allowed for the work performed, multiplied by the standard hourly wage rate.

Produced

The completed output of goods or services as a result of manufacturing or production processes.

Materials Price Variance

The difference between the actual cost of materials used in production and the expected (or standard) cost of those materials.

Direct Materials Quantity Variance

The variance between the real amount of materials consumed in production and the anticipated standard amount, multiplied by the cost per unit according to standards.