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Under the Direct Method the Two Largest Classes of Items

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Essay

Under the direct method the two largest classes of items in the operating activities section for a merchandising company are cash ________________________ and cash _________________________.


Definitions:

Quantity Change

An alteration in the amount of goods or services supplied or demanded in a market.

Average Fixed

The fixed costs of production divided by the quantity of output produced, illustrating how those costs are spread over output.

Average Fixed Cost

The fixed costs of production divided by the quantity of output produced.

Total Output

The total quantity of goods or services produced by an individual, firm, industry, or economy.

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