Operating Activities Include All Except

question 66

Multiple Choice

Operating activities include all except

• A) collection of accounts receivable.
• B) payment of wages.
• C) decrease in accounts payable.
• D) payment of dividends to shareholders.

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Definitions:

Traditional Costing

An accounting method that applies indirect costs to products based on a predetermined rate, not necessarily reflecting the actual usage of resources.

Direct Labor-Hours

The total hours worked directly on a manufacturing process or project.

Traditional Costing

An accounting method that allocates manufacturing overhead costs to products based on the volume of production resources consumed.

Direct Labor-Hours

A measure of the work done by employees directly involved in the manufacturing process, counted in hours.