Stock Splits: Split-Gram, Inc

question 83

Multiple Choice

Stock splits: Split-Gram, Inc., has announced a 4-to-1 stock split. If the company currently has 1 million shares outstanding, how many outstanding shares will it have after the split?

• A) 4 million
• B) 3 million
• C) 2 million
• D) 1 million

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Definitions:

Standard Machine Setups

This term refers to the predetermined arrangements and settings on machinery for standard operations, aiming to minimize setup time and costs.

Standard Variable Overhead Rate

The predetermined rate at which variable overhead costs are expected to occur relative to a specific activity or cost driver.

Variable Manufacturing Overhead

The portion of manufacturing overhead costs that varies with production volume.

Variable Overhead Efficiency Variance

Variable overhead efficiency variance is the difference between the actual and budgeted variable overhead cost based on the efficient utilization of resources.