A Measure That Describes the Cash Remaining from Operations After

question 161

Multiple Choice

A measure that describes the cash remaining from operations after adjustment for capital expenditures and dividends is

• A) adjusted cash from operations.
• B) cash provided by operations.
• C) free cash flow.
• D) net cash provided by operating activities.

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Definitions:

Machine-Hours

A measure of production output or work using machines, calculated as the number of machines used multiplied by the hours they operate.

Fixed Overhead Budget Variance

The difference between the actual fixed overhead costs incurred and the budgeted fixed overhead costs.

Predetermined Fixed Manufacturing Overhead Rate

A rate used to allocate fixed manufacturing overhead to products based on a predetermined activity level.

Fixed Manufacturing Overhead Budget Variance

The difference between the actual fixed manufacturing overhead costs and the budgeted fixed overhead costs.