A Reverse Stock Split Increases the Market Value Per Share

question 118

True/False

A reverse stock split increases the market value per share and the par value per share of stock.

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Definitions:

Machine-Hours

An indicator of the amount of work produced or activity level, determined by how many hours equipment is running.

Plantwide Predetermined Overhead Rate

A single overhead rate calculated by dividing total estimated manufacturing overhead costs by an estimated allocation base for the entire factory, often used in simpler costing systems.

Job-Order Costing System

An accounting system that assigns costs to specific jobs or batches of goods, typically used in manufacturing or service industries where each job is unique.

Direct Labor-Hours

A measurement of the time workers spend directly manufacturing a product, often used to allocate manufacturing overhead.