The Typical Reason for a Stock Split Is to ________

question 64

Multiple Choice

The typical reason for a stock split is to ________.

• A) allow for growth in the company assets
• B) allow liabilities to grow
• C) increase earnings per share
• D) keep the share price in a range

---

Definitions:

Variable Manufacturing Overhead

Indirect production costs that vary with the level of output, such as utilities or indirect labor.

Direct Labor-Hours

The total hours worked by employees directly involved in the manufacturing process, often used as a basis for allocating manufacturing overhead to products.

Fixed Manufacturing Overhead

Costs associated with the production process that do not vary with the level of output, including costs like rent, salaries of permanent staff, and machinery depreciation.

Job-Order Costing System

An accounting method that assigns costs to specific production batches or jobs, used for customized orders.