The Shareholders of a Corporation

question 56

Multiple Choice

The shareholders of a corporation

• A)are inside directors of the corporation.
• B)are only comprised of top management for a large corporation.
• C)directly manage the corporation.
• D)elect a board of directors to represent their interests.

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Definitions:

Standard Costs

predetermined costs assigned to goods and services, used as a benchmark for measuring performance.

Standard Price

The predetermined cost of acquiring goods and services, often used in budgeting and cost control.

Direct Materials

Raw materials that can be directly traced to the production of a specific product, a component of the total manufacturing cost.

Variances

Differences between planned or expected financial outcomes and the actual results.