When All or a Portion of Shareholders' Capital Investments Are

question 17

Multiple Choice

When all or a portion of shareholders' capital investments are returned to them, this is called a

• A) return dividend.
• B) liquidating dividend.
• C) stock dividend.
• D) investment dividend.

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Definitions:

Variable Overhead Efficiency Variance

The difference between the actual variable overhead incurred and the standard cost based on the actual level of activity output.

Variable Overhead

Costs that vary with the level of production or sales volume, such as raw materials and labor directly involved in production.

Labor Efficiency Variance

The difference between the actual hours worked to produce goods and the standard hours expected, multiplied by the standard labor rate.

Direct Labor Standards

The benchmarks set for the cost and amount of direct labor needed to produce a product or service, used for budgeting and performance evaluations.