Which of the Following Statements Regarding Disclosures for Stock-Based Compensation

question 97

Multiple Choice

Which of the following statements regarding disclosures for stock-based compensation plans is false?

• A)An entity is required to disclose the intrinsic values of outstanding stock and options granted.
• B)The effect on the stock-based compensation plans on the entity's cash flows must be disclosed.
• C)An entity must disclose information only for vested shares that are exercised and exercisable.
• D)An entity must provide a reconciliation of beginning and ending amounts for the number and weighted average exercise price of share options.

---

Definitions:

Plantwide Overhead Rate

A single overhead rate calculated by dividing total factory overhead by the total amount of a chosen allocation base, applied uniformly across all production.

Activity-based Costing (ABC)

A costing method that assigns overhead and indirect costs to related products and services based on their usage.

Overhead Rates

The ratio used to allocate indirect costs to products or services, usually based on direct labor hours, machine hours, or direct labor cost.

Square-foot

A unit of area measurement equal to a square measuring one foot on each side, commonly used in real estate and architecture.