For Stock Splits and Stock Dividends,while It Is Possible to State

question 95

Essay

For stock splits and stock dividends,while it is possible to state the number of shares as beginning-of-year equivalents,it makes more sense to use end-of-year equivalents because financial statement readers are evaluating EPS after the end of the year.Explain why the adjustment for stock splits and stock dividends is standardized.

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Definitions:

Manufacturing Overhead

All indirect costs associated with manufacturing a product, excluding direct materials and direct labor costs.

Variable Overhead Rate Variance

The difference between the actual variable overhead incurred and the expected (or standard) cost based on the actual level of activity.

Variable Manufacturing Overhead

Overhead costs that fluctuate with the level of production, such as utilities or raw materials.

Standards

Predetermined benchmarks or norms used for measuring performance, costs, and efficiency in production.