In a Capacity Analysis Report in Time-Based Activity-Based Costing, the Unused

question 326

True/False

In a Capacity Analysis report in time-based activity-based costing, the unused capacity in number of employees is computed by multiplying the unused capacity in minutes by the practical capacity per employee in minutes.

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Definitions:

Accumulated Depreciation

The total amount of depreciation expense that has been recorded against a fixed asset since it was put into service.

Statement of Cash Flows

A financial statement that provides aggregate data regarding all cash inflows and outflows a company receives from its operational, investing, and financing activities.

Operating Activities

The core activities that a business performs to earn revenue, including production, distribution, and sales processes.

Indirect Method

A technique used in cash flow statements to calculate net cash flows from operating activities by starting with net income and adjusting for non-cash transactions and changes in working capital.