When Recognizing Compensation Under a Stock Option Plan, Unanticipated Forfeitures

question 173

Multiple Choice

When recognizing compensation under a stock option plan, unanticipated forfeitures are treated as:

• A) A change in accounting principle.
• B) A loss.
• C) An income item.
• D) A change in estimate.

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Definitions:

Output

In economics, this refers to the total amount of goods and services produced by an economic system over a given period.

Total Daily Cost

The complete sum of all expenses incurred by an individual or company in a single day, including both fixed and variable costs.

Cost Of Workers

The total expenses incurred by an employer to compensate employees, including wages, benefits, and any other forms of compensation.

Cost Of Machines

The expenses involved in acquiring machinery for business operations, including purchase price, installation, maintenance, and operation costs.