A stock dividend may be declared to increase the marketability of a corporation's shares by lowering the price per share
Indicate whether the statement is true or false
T
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Which of the following is an advantage of using radio as an advertising medium?
A) higher attention than television B) standardized rate structures C) long duration of ad exposure D) high quality reproduction E) high geographic selectivity
Select the incorrect statement regarding relevant costs and revenues.
A. Avoidable costs are also known as differential costs. B. Sunk costs are never relevant for decision-making purposes. C. Differential revenues are expected future revenues that differ from past revenues. D. To be relevant, a cost or revenue must be future-oriented and must differ between the alternatives.
Answer the following statements true (T) or false (F)
1. Direct material costs and direct labor costs cannot be easily traced to products. Therefore, they are allocated to products. 2. Manufacturing overhead costs, which are also known as indirect costs, cannot be cost-effectively traced to products. 3. The predetermined overhead allocation rate is an estimated overhead cost per unit of the allocation base and is calculated at the beginning of the accounting period. 4. Companies calculate the predetermined overhead rate at the beginning of an accounting period using the actual overhead costs 5. A modification of the overhead allocation method which uses a single plantwide rate, is to use multiple predetermined overhead allocation rates that have different allocation bases.
The qualitative characteristics of accounting on which the conceptual framework is centered come under the general heading of:
a. relevance. b. materiality. c. representational faithfulness. d. decision usefulness.