Though Favorable Volume Variances Are Usually Good News, If Inventory

question 155

True/False

Though favorable volume variances are usually good news, if inventory levels are too high, additional production could be harmful.

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Definitions:

Dividend Paid

The cash payment made by a corporation to its shareholders as a distribution of profits.

Stock Dividend

A stock dividend is a payment made in the form of additional shares of the company's stock rather than cash.

Shares Outstanding

Shares outstanding refer to the total number of shares of a corporation's stock that are owned by shareholders at any given time, including those held by institutional investors and restricted shares held by insiders.

Reverse Stock Split

A corporate action where a company reduces its total number of shares outstanding, thereby increasing the value of each remaining share.