Use the Table for the Question(s)below

question 50

Multiple Choice

Use the table for the question(s) below.
Consider the following price and dividend data for Ford Motor Company:

-Assume that you purchased Ford Motor Company stock at the closing price on December 31,2004 and sold it at the closing price on December 30,2005.Your realized annual return is for the year 2005 is closest to:

• A)-44.5%
• B)-45.1%
• C)-47.3%
• D)-48.5%

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Definitions:

Absorption Costing

A method of cost accounting that includes all manufacturing costs - direct materials, direct labor, and both variable and fixed manufacturing overhead - in the cost of a product.

Variable Costing

A costing method where only variable manufacturing costs are included in the cost of goods sold, with fixed manufacturing overhead treated as a period expense.

Absorption Costing

An accounting method that includes all manufacturing costs (both fixed and variable) in the cost of a product.

Net Income

The total earnings of a company after subtracting all expenses, taxes, and costs, reflecting the actual profitability.