The Following Cost Data Pertain to the Operations of Bouffard

question 3

Multiple Choice

The following cost data pertain to the operations of Bouffard Department Stores, Inc., for the month of May. The Brentwood Store is just one of many stores owned and operated by the company. The Shoe Department is one of many departments at the Brentwood Store. The central warehouse serves all of the company's stores. What is the total amount of the costs listed above that are direct costs of the Shoe Department?

• A)$38,000
• B)$29,000
• C)$70,000
• D)$34,000

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Definitions:

Common Stock

A form of corporate equity ownership, a type of security representing ownership in a corporation, entitling the holder to vote on corporate matters and receive dividends.

Earnings Per Share

The portion of a company's profit allocated to each outstanding share of common stock, serving as an indicator of a company's profitability.

Stock Split

An action by a company to divide its existing shares into multiple new shares to boost the liquidity of the shares.

EPS Rise

An increase in a company's earnings per share (EPS), indicating that it is generating greater profits relative to the number of shares outstanding.