A Company Issued 100,000 Fully Paid,5% Preference Shares Priced at $2

question 20

Multiple Choice

A company issued 100,000 fully paid,5% preference shares priced at $2 each.The dividend to be paid on the shares for a financial year is:

• A) $5,000.
• B) $10,000.
• C) $20,000.
• D) $15,000.

---

Definitions:

Conversion Cost

Comprises expenses related to transforming inputs into finished outputs, specifically through labor and overhead costs, essential in manufacturing processes.

Direct Labor

The labor or workforce directly involved in the production process of goods or services, whose costs can be directly attributed to the products being manufactured.

Process Cost System

An accounting method used to track production costs for large numbers of identical units that are mass-produced in a continuous fashion.