Which Statement Is True

question 13

Multiple Choice

Which statement is true?

• A)Dividends are evenly distributed by a wide range of companies in various industries and of varying sizes.
• B)Unanticipated changes in dividends can affect stock prices.
• C)Managers never cut dividends.
• D)Cash dividends and stock repurchases have increased in nominal terms but decreased in real terms.
• E)Managers tend to increase dividends rapidly when transitory earnings rise.

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Definitions:

Labor Efficiency Variance

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

Standard Hours

The estimated time that should be taken to complete a task or produce a unit under normal conditions.

Actual Labor-Hours

Actual labor-hours represent the real number of labor hours worked by employees, as opposed to planned or estimated hours, often used in productivity and costing analyses.

Direct Material Standards

The anticipated cost and quantity of materials required for the production of goods or services.