Stock Splits and Stock Dividends ________

question 16

Multiple Choice

Stock splits and stock dividends ________.

• A)are just paper financial transactions
• B)divide the firm's existing shares into multiple shares with the same total dollar value
• C)may be used to signal management's intentions to the marketplace
• D)All of the above

---

Definitions:

Conversion Costs

The combined costs of direct labor and manufacturing overhead, which are incurred to convert raw materials into finished goods.

Process Costing

A costing method used in mass production where costs are assigned to processes or departments, not individual units.

Conversion Costs

The total expense required to convert raw materials into finished goods, including labor and overhead costs.

Process Costing

An accounting methodology that traces and accumulates direct costs, and allocates indirect costs of a manufacturing process, to calculate the total cost of manufacturing a product.