Which of the Following Is NOT a Component of Cash

question 275

Multiple Choice

Which of the following is NOT a component of cash flow from assets?

• A) Net new borrowings.
• B) Operating cash flow.
• C) Additions to net working capital.
• D) Retained Earnings.
• E) Net payables.

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Definitions:

Direct Labor-hours

Represents the total hours of labor directly involved in manufacturing a product or delivering a service.

Variable Overhead Rate

The rate at which variable overhead costs are allocated to each unit of production, typically based on hours of labor or machine hours.

Quantity Standard

A predetermined measure of the amount of input that should be used in the production of a single unit of product or service.

Variable Overhead Efficiency Variance

The difference between the actual variable overhead incurred and the expected (or standard) amount based on efficient operations.