Exercise of Stock Option Refers to an Employee's Purchase of Stock

question 18

True/False

Exercise of stock option refers to an employee's purchase of stock using stock options. (Basic Terminology)

---

Definitions:

Yield

A measure of materials usage efficiency.

Equivalent Units

A concept used in process costing that converts partially completed units into a number of fully completed output units.

Manufacturing Cells

A layout design in manufacturing where machines and workers are grouped together to produce a specific product or component.

Conversion Costs

Costs required to transform raw materials into finished products, combining direct labor and manufacturing overhead.