Thunder Ltd

question 149

Essay

Thunder Ltd. had total operating expenses of $ 120,000 in 2021, which included depreciation expense of $ 20,000. Also, during 2021, prepaid expenses increased by $ 5,000 and accrued liabilities decreased by $ 6,700.
Instructions
Calculate the amount of cash payments for operating expenses in 2021, using the direct method.

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Definitions:

Customer Cost Analysis

An evaluation of all the costs involved in acquiring and retaining customers, used to determine the profitability of customer relationships.

Time-Driven Activity-Based Costing

A cost accounting method that allocates indirect costs to products and services based on the time required for activities.

Tech Support Department

A division within a company responsible for assisting customers with technical problems or questions related to the company's products or services.

Customer Cost Analysis

An assessment to determine the total cost to serve a customer, including acquisition, fulfillment, and support costs.