Which of the Following Statements Is Correct

question 73

Multiple Choice

Which of the following statements is correct?

• A) Investors rightly prefer repurchases because the reduced number of shares increases earnings per share.
• B) Companies with large repurchase programs usually finance them by a cut in dividends.
• C) Companies pay out as dividends whatever is left over after making needed capital investments.
• D) A stock repurchase does not increase stock price but it does avoid the fall in price that would occur on the ex-dividend date.

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Definitions:

Actual Direct Labor Cost

The total expense of labor directly involved in the production of goods or services, as it actually occurred.

Labor Rate Variance

Labor rate variance measures the difference between the actual labor costs incurred and the expected (or standard) labor costs, indicating discrepancies in wage rates or labor efficiency.

Actual Direct Labor Rate

The actual wage rate paid to workers, as opposed to the expected or standard rate used in budgeting or costing.

Direct Labor-hours

The total hours of labor directly involved in the manufacturing process of a product.