In the Statement of Cash Flow for a Public College

question 83

Multiple Choice

In the Statement of Cash Flow for a public college or university, endowment contributions are included in cash flows provided by (used for) ____________ activities.

• A)​operating
• B)​financing
• C)​noncapital financing
• D)​investing

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Definitions:

Cost Allocation Method

A technique used to assign indirect costs to products, services, or departments based on relevant cost drivers.

Overhead Per Drum

The allocation of indirect production costs to each drum produced, considering expenses not directly tied to production like rent and utilities.

Variable Factory Overhead

Costs in manufacturing that vary with the level of production output, including items like utilities and materials consumed in production.

Fixed Manufacturing Overhead

Refers to the stable costs associated with producing goods, such as factory rent and salaries, which do not change regardless of production levels.