An Increase in Which One of the Following Will Increase

question 80

Multiple Choice

An increase in which one of the following will increase operating cash flow for a profitable, tax-paying firm?

• A)Fixed expenses
• B)Marginal tax rate
• C)Net capital spending
• D)Inventory
• E)Depreciation

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Definitions:

Cost Reconciliation Report

A report detailing the reconciliation of budgeted, standard, or estimated costs with actual costs incurred.

Work in Process Inventory

Materials and products that are in the production process but have not yet been completed.

First-In, First-Out Method

An inventory valuation method where the costs of the earliest goods purchased are the first to be recognized in determining cost of goods sold.

Equivalent Unit

A concept used in cost accounting to represent the portion of a product, in terms of material, labor, or overhead costs, completed within a given period, facilitating cost analysis.