[The Following Information Applies to the Questions Displayed Below

question 93

Multiple Choice

[The following information applies to the questions displayed below.]
Shown below is information relating to the stockholders' equity of Clydesdale Corporation at December 31,2015:

-The average issue price per share of the preferred stock was:

• A)$40.
• B)$80.
• C)$120.
• D)$160.

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Definitions:

Operations

Refers to the day-to-day activities involved in the running of a business that are essential for producing and delivering goods or services.

Variable Costing

An accounting method that includes only variable costs—direct materials, direct labor, and variable manufacturing overhead—in product cost calculations.

Absorption Costing

A product costing technique in accounting that involves adding direct materials, direct labor, and both kinds of manufacturing overhead—variable and fixed—to the product's cost.

Fixed Manufacturing Overhead

Costs that do not change with the level of production output, including rent, salaries of permanent staff, and depreciation of factory equipment.