Some Corporations Pay Their Shareholders in the Form of More

question 30

Multiple Choice

Some corporations pay their shareholders in the form of more shares. Which of the following best describes this type of payment?

• A) stock dividend
• B) dividend windfall
• C) share distribution
• D) share reward

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Definitions:

Single Plantwide Overhead Rate

A cost allocation method that applies the same overhead rate to all products, regardless of the department where they were produced or the amount of overhead they actually incurred.

Machine Hours

A metric used to allocate manufacturing overhead costs to individual products based on the number of hours the machines are run to produce them.

Fabrication Department

A division or unit within a manufacturing firm dedicated to the assembly or production of goods, where raw materials are transformed into finished products.

Multiple Department Rate System

An accounting system used to allocate indirect costs to individual departments based on varying rates, reflecting the different resource usage in each department.