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Direct Method
A costing approach where only direct costs are charged to a cost object, typically excluding overhead or indirect costs.
Net Cash Provided
The amount of cash generated by a company's operations after accounting for expenditures and receipts.
Indirect Method
A way of preparing the cash flow statement where net income is adjusted for changes in balance sheet accounts to obtain net cash flow from operating activities.
Operating Activity
Activities that are part of the core operations of a business, including production, sales, and the provision of services.
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