Which of the Following Is a Term for Stock Issued

question 40

Multiple Choice

Which of the following is a term for stock issued to individuals below its fair market value?

• A) No-par stock
• B) Reduced stock
• C) Watered stock
• D) Less-value stock
• E) Unapproved stock

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Definitions:

Direct Labor

The labor cost attributed directly to the production of goods or services.

Standard Cost

A predetermined cost of manufacturing a single unit or a number of units of a product, calculated for managerial accounting purposes.

Materials Quantity Variance

A measure of the difference between the actual quantity of materials used in production and the expected quantity, multiplied by the standard cost per unit.

Materials Price Variance

The deviation from the standard to the real price of materials, calculated by multiplying this difference by the amount of materials bought.