A Staggered Board

question 53

Multiple Choice

A staggered board

• A) increases the chances of a hostile takeover.
• B) has only a portion of the board stand for election each year.
• C) makes it easier for shareholders to curb a CEO's power.
• D) is seen in less than 50% of U.S. boards.
• E) provides little continuity.

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Definitions:

Predetermined Overhead Rate

A rate used to allocate manufacturing overhead to individual products or jobs, based on a certain activity, such as direct labor hours or machine hours.

Direct Labor-Hours

The total time spent by workers directly involved in the manufacturing process.

Unit Product Cost

The total cost (direct materials, direct labor, and overhead) to produce a single unit of a product.

Predetermined Overhead Rate

A rate calculated before the accounting period begins, used to apply manufacturing overhead costs to products based on a specific activity base.