The total specialization rule states that an entity instance of a supertype is allowed not to belong to any subtype

You own 30,000 shares of a (C) Corporation, which has 100,000 shares outstanding. It produces $1,200,000 in pre-tax profits this year. Its tax rate is 20% and its payout ratio is 75%. You are in the 40% (combined) tax bracket. The tax on your dividends this year will be:

a) 40% x (30,000/100,000) x 1,200,000 x 25% = 36,000 b) 40% x (30,000/100,000) x 1,200,000 = 144,000 c) 40% x (30,000/100,000) x 80% x 1,200,000 = 115,200 d) 40% x (30,000/100,000) x 80% x 1,200,000 x 75% = 86,400 e) 40% x (30,000/100,000) x 80% x 1,200,000 x 25% = 28,800

Which of the following statements correctly describes the term "conversion costs"?

A) the cost to convert finished goods to sales to customers B) the cost incurred for direct and indirect materials during production C) the cost of direct materials, direct labor, and manufacturing overhead costs incurred during production D) the cost of direct labor combined with manufacturing overhead