Free Cash Flow Is Equal to

question 35

Multiple Choice

Free cash flow is equal to

• A) cash flow from operating activities.
• B) cash flow from financing activities.
• C) cash flow from investing activities.
• D) cash flow from operating activities less cash flow from investing activities.

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Definitions:

Appraisal Costs

Expenses associated with the evaluation and inspection of products to ensure they meet quality standards and requirements.

Throughput Time

The total time taken to manufacture a product, which includes processing, inspection, move, and queue times.

Manufacturing Cycle Efficiency

A performance measurement that evaluates how efficiently a manufacturing process converts raw materials into finished goods.

Non-value-added Activities

Processes or tasks that consume resources but do not add value or contribute to the customer's requirements or product enhancement.