According to IAS 33,the Weighting Applied to Calculate the Weighted-Average

question 48

Multiple Choice

According to IAS 33,the weighting applied to calculate the weighted-average number of shares is:

• A)the number of days that the shares are outstanding as a proportion of the total number of days in the period.
• B)to weight the total number of shares by the market capitalisation value of each share.
• C)to weight the total number of shares on issue for the period by the proportion of the total number of shares or other equity instruments on issue during the period.
• D)to weight the number of shares calculated in accordance with IAS 33 by their issue price regardless of the period in which the shares were issued or their current market value.

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Definitions:

Standard Machine-Hours

The estimated amount of machine time required to produce a single unit of production under normal operating conditions.

Fixed Manufacturing Overhead

Costs in the manufacturing process that do not vary with the volume of production, such as salaries of managers and depreciation of factory equipment.

Volume Variance

The difference between the expected volume of units produced or sold and the actual volume, affecting cost allocations in budgeting.

Predetermined Overhead Rate

An estimated charge per unit of activity used to allocate manufacturing overhead costs to products, calculated at the beginning of a period based on expected costs and activity levels.