Which of the Following Is True of Outstanding Shares

question 62

Multiple Choice

Which of the following is true of outstanding shares?

• A) A firm cannot sell more shares than the outstanding shares mentioned in the charter.
• B) Authorized shares become outstanding shares when they are issued or sold to investors.
• C) Outstanding shares are indicated in a firm's corporate charter.
• D) Outstanding shares are the shares repurchased by the firm.

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Definitions:

Fixed Overhead Volume Variance

The difference between the budgeted and actual volume of production, multiplied by the fixed overhead rate, indicating how fixed costs are allocated over different levels of output.

Fixed Overhead Budget Variance

This term refers to the difference between the budgeted fixed overhead costs and the actual fixed overhead costs incurred.

Standard Fixed Manufacturing Overhead Rate

The predetermined rate used to apply fixed manufacturing overhead to products, based on an estimate of total fixed manufacturing costs and an allocation basis.

Actual Fixed Overhead Costs

The real costs incurred for fixed overhead during a specified accounting period.