Action Teams

question 29

Multiple Choice

Action teams

• A) generally have tasks that are quite simple.
• B) are formed to take on "one-time" tasks.
• C) perform tasks that are normally limited in duration.
• D) invariably have low member involvement.
• E) help the organization achieve its long-term goals.

Understand the first-in, first-out (FIFO) method in process costing.

Calculate equivalent units of production for conversion costs under FIFO.

Recognize how production costs impact the cost per equivalent unit under different costing methods.

Understand the differences between the weighted-average and FIFO methods in process costing.

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Definitions:

Retained Earnings

The portion of net income that is retained by the corporation rather than distributed to its shareholders as dividends.

Constant Dividend

A policy of distributing a fixed amount of dividend per share to shareholders, regardless of the company's earnings variations over time.

Cost of Retained Earnings

This represents the opportunity cost for a company of using its retained earnings for investment purposes rather than distributing them as dividends.

Common Stock

A type of equity security that represents ownership in a corporation, giving holders voting rights and the potential for dividends.