An Increase in the Number of Issued and Outstanding Shares

question 139

Multiple Choice

An increase in the number of issued and outstanding shares of stock along with a proportional reduction in the stock's par value per share is a:

• A)deficit.
• B)stock dividend.
• C)stock split.
• D)cash dividend.

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Definitions:

Factory Overhead

All indirect costs related to the production process, such as utilities, maintenance, and supervision, not directly tied to specific units produced.

Factory Burden

Another term for manufacturing overhead, encompassing all indirect costs involved in operating a factory, excluding direct materials and labor costs.

Surplus

The amount by which a company's income exceeds its spending, or in a broader sense, an excess of assets over liabilities.

Conversion Costs

The combined costs of direct labor and manufacturing overhead incurred to convert raw materials into finished products.