Which of the Following Transactions Does Not Affect Earnings Per

question 97

Multiple Choice

Which of the following transactions does not affect earnings per share?

• A)A 2-for-1 common stock split.
• B)A 10% common stock dividend distribution.
• C)Accruing revenue at year-end.
• D)Issuing additional shares of preferred stock.

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Definitions:

Activity-Based Costing

A costing method that assigns overhead and indirect costs to specific activities, improving the accuracy of product and service costing.

Manufacturing Overhead

All indirect costs associated with the manufacturing process, such as factory rent, utilities, and salaries of indirect labor.

Activity-Based Costing

A method of costing that identifies activities in an organization and assigns the cost of each activity to all products and services according to the actual consumption.

Batch Setup

Batch setup refers to the process and the activities involved in preparing equipment or a production area for manufacturing a specific batch of products.