Which One of the Following Is Least Apt to Encourage

question 55

Multiple Choice

Which one of the following is least apt to encourage managers to act in the best interest of shareholders?

• A)Shareholder election of the board of directors,who in turn select managers
• B)Threat of a takeover by another firm
• C)Linking manager compensation to share value
• D)Compensating managers with fixed salaries
• E)Granting stock options to key managers

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Definitions:

Work In Process

This term is often used interchangeably with Work In Progress, denoting goods that are partially completed in the manufacturing process.

Equivalent Unit Calculations

A method in cost accounting used to allocate costs to partially completed goods, converting them into the amount of finished goods units.

Manufacturing Costs

Expenses related to producing goods, including direct materials, direct labor, and manufacturing overhead.

Weighted Average Method

A method of calculating the average cost of inventory goods by weighting the cost of each item according to its proportion in the total inventory.