For Each of the Following Items, Indicate Whether It Would

question 119

Multiple Choice

For each of the following items, indicate whether it would appear on a statement of cash flows prepared using the Direct method (a) or the Indirect method (b) .
-Decrease in accounts payable

• A)Direct
• B)Indirect

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Definitions:

Total Manufacturing Costs

The aggregate cost incurred in the production of goods, including raw materials, labor, and overhead expenses.

Direct Labor

The cost of labor that is directly involved in the production of goods or services.

Manufacturing Overhead

Refers to the indirect factory-related costs incurred when manufacturing a product or performing a service, which may include the cost of utilities, depreciation, and salaries of maintenance personnel.

Total Manufacturing Costs

The sum of all costs directly involved in the production of a good, including direct materials, direct labor, and manufacturing overhead.