(Appendix 2A)Laborn Inc

question 2

Multiple Choice

(Appendix 2A) Laborn Inc.'s inspection costs are listed below: Management believes that inspection cost is a mixed cost that depends on the number of units produced.Using the least-squares regression method, the estimates of the variable and fixed components of inspection cost would be closest to:

• A)$43.04 per unit plus $10, 648 per month
• B)$34.63 per unit plus $2, 089 per month
• C)$34.78 per unit plus $2, 044 per month
• D)$36.00 per unit plus $1, 714 per month

Explain and apply the concepts of cash dividends, stock dividends, and stock splits.

Understand and analyze the process of issuing common and preferred stock.

Calculate stock transactions impact on total paid-in capital and stockholders' equity.

Analyze the effects of treasury stock transactions on a company's financial statements.

---

Definitions:

Ownership Percentage

The fraction of a company's shares owned by an individual or entity, representing a portion of control over the company.

General Partner

An owner of a partnership who has unlimited liability and is active in managing the firm, as opposed to a limited partner with limited liability.

Secondary Market

The market where investors buy and sell securities they already own, as opposed to the primary market where securities are first issued.

Foreign Exchange Market

A global marketplace for trading national currencies against one another.