For a Share Placement,the Australian Authority ASIC Requires

question 31

Multiple Choice

For a share placement,the Australian authority ASIC requires:

• A) that a placement must consist of subscriptions of not less than $1 000 000.
• B) that any discount from the current market price not be more than 10%.
• C) a memorandum of information to be sent to all participating institutions.
• D) a prospectus, which can be filed with them after the event.

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Definitions:

Underapplied Overhead

A situation where the allocated overhead costs are less than the actual overhead costs incurred, resulting in a deficit in the cost of goods sold.

Actual Overhead

The real incurred costs relating to overhead during a specified accounting period, which could vary from budgeted or standard overhead costs.

Applied Manufacturing Overhead

The allocation of manufacturing overhead costs to individual units of production, based on a predetermined rate or basis.

Overapplied Overhead

A situation where the allocated manufacturing overhead costs for a period exceed the actual overhead costs incurred, indicating a discrepancy in costing or budgeting.