Both the Direct and Indirect Methods Yield the Identical Net

question 80

True/False

Both the direct and indirect methods yield the identical net cash flow amount provided or used by operating activities.

---

Definitions:

Process Layout

An arrangement of production where workstations or departments are grouped by function to perform similar activities, optimizing for flexibility rather than efficiency.

Flexibility

The ability to adapt to new, different, or changing requirements, environments, or conditions in a responsive and effective manner.

Product Layout

A way to arrange a manufacturing business by placing equipment in an assembly line.

Auto Assembly Lines

A manufacturing process in which parts are added to a product in a sequential manner to create a finished product efficiently.