Earnings Per Common Share Will Immediately Increase as a Result

question 78

Multiple Choice

Earnings per common share will immediately increase as a result of which of the following?

• A) The sale of additional common shares by the company.
• B) An increase in the dividends paid to common shareholders by the company.
• C) An increase in the company's net income.
• D) The issuance of bonds by the company to finance construction of new buildings.

---

Definitions:

Direct Labor

The labor costs directly tied to the production of goods or services, involving tasks that specifically contribute to creating the final product.

Indirect Supervisory Costs

Costs associated with supervision that cannot be directly traced to a specific product or service but are necessary for production.

Work in Process Inventory

Items currently undergoing manufacturing but not yet finished.

Finished Goods Inventory

Products that have completed the manufacturing process and are ready for sale.