The Operating Cash Flow Ratio Is Computed by Dividing Cash

question 15

Short Answer

The operating cash flow ratio is computed by dividing cash flows from operating activities by ____________.

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Definitions:

Machine-Hours

A measure of the amount of time machines are run in the production process, often used as a basis for allocating manufacturing overhead costs.

Batches

Quantities or groups of products produced or processed at the same time.

Product Margins

The profit earned on the sale of a product after subtracting the cost associated with its production and sale.

Activity-Based Costing

A method of allocating costs to products and services based on the activities they require.