The Cost to Install Equipment to Reduce the Emissions of a Coal-Fired

question 21

Multiple Choice

The cost to install equipment to reduce the emissions of a coal-fired power plant would be categorized as what type of cost by an environmental management accounting system (EMA) ?

• A)Waste and emission control cost
• B)Prevention cost
• C)Intangible cost
• D)Research and development (R&D)cost

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Definitions:

Cash Dividends

Direct payments of profit made to shareholders, proportionate to the number of shares they own.

Treasury Stock

Shares that were first put into circulation by a company and then taken back, diminishing the quantity of shares actively traded on the market.

Small Stock Dividend

A dividend paid in the form of additional shares of the issuing corporation, typically representing less than a 25% increase of the outstanding shares.

Retained Earnings

The portion of net income that is retained by the corporation rather than distributed to its owners as dividends.