Which of the Statements Below Is Not Correct

question 56

Multiple Choice

Which of the statements below is not correct?

• A)Normal spoilage is spoilage that occurs under efficient operating conditions.
• B)Normal spoilage is controllable in the short term and not considered a part of product cost.
• C)Abnormal spoilage is spoilage in excess of that expected under efficient operating conditions.
• D)Abnormal spoilage is charged as a loss to operations in the period detected.

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Definitions:

Target Payout Ratio

A percentage that represents the amount of earnings a company decides to distribute to its shareholders in the form of dividends.

Stable Dividends

Dividends that are consistently paid out by a company at a steady rate, regardless of the company's earnings fluctuations.

Ex-Dividend Date

The date on which a stock trades without a declared dividend that has yet to be paid. Four days prior to the date of record.

Business Days

Workdays typically from Monday to Friday, excluding public holidays and weekends, used in the context of official and financial transactions.