In a Corporation, All Profits Go to ________

question 29

Multiple Choice

In a corporation, all profits go to ________.

• A) The owners and the shareholders
• B) Reduce the surplus
• C) The stockholders as salaries
• D) The partners according to the terms of the agreement
• E) Friends and family

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Definitions:

Machine-Hours

A measure of production activity that quantifies the total hours machines are operated in the manufacturing process.

Direct Labor Cost

The wages or salaries directly attributable to the production of goods or services, excluding indirect costs such as supervision and maintenance.

Overhead Applied

Refers to the allocation of indirect costs to specific cost objects, such as products or services, based on a predetermined rate or basis.

Direct Labor-Hours

The total hours of labor directly involved in the manufacturing process, used as a basis for allocating manufacturing overhead to products.