A Proxy Is

question 27

Multiple Choice

A proxy is

• A) a device for circumventing regular voting procedures.
• B) a coupon attached to each share of stock and used by the shareholder in casting his vote on current issues.
• C) an authorization of a registered stockholder to another person to act in his place at the meeting.
• D) a warrant allowing a stockholder to purchase a specified number of additional shares at a given price.

Recognize the journal entries related to the purchase and use of raw materials, labor, and the allocation of factory overhead in a process cost accounting system.

Analyze the distinction between direct labor and indirect labor (factory overhead) within the context of process cost accounting.

Understand the calculation and application of equivalent units of production in determining cost per unit in a process cost environment.

Distinguish between the treatment of costs in different production departments and the flow of costs through the production process.

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Definitions:

Regressive Tax

At the individual level, a tax whose average tax rate decreases as the taxpayer’s income increases. At the national level, a tax for which the average tax rate (= tax revenue/GDP) falls as GDP rises.

Income Tax Base

The total amount of income on which an individual or entity is required to pay income tax.

Sales Tax

A tax levied on the cost (at retail) of a broad group of products.

Federal Income Tax

The tax levied by the IRS on the annual earnings of individuals, corporations, trusts, and other legal entities.