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Direct Method
A method for creating the cash flow statement by directly listing the actual cash flows associated with operating activities.
Operating Activities
Business actions that are involved in the day-to-day functions of producing goods, offering services, and other core operations.
Direct Method
A way of allocating service department costs directly to production departments without any consideration for services rendered between service departments.
Operating Activities
Activities that relate directly to the operation of the company, including production, sales, and day-to-day administrative functions.
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