Which One of the Following Is Not a Cash Flow

question 18

Multiple Choice

Which one of the following is not a cash flow item in financial lease analysis?

• A)The lessor's repayment schedule for financing the asset
• B)The value of the salvage to the lessor
• C)The CCA tax shelters of the lessor
• D)The lease payment's tax shelter impacts for the lessee

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Definitions:

Variable Overhead Efficiency Variance

The difference between the actual variable overhead incurred during production and the standard cost of variable overhead allocated for the actual production volume.

Fixed Overhead Volume Variance

The difference between the budgeted and actual fixed overhead costs, attributed to the variance in the volume of production.

Fixed Component

A cost or part of a cost that remains unchanged regardless of changes in the level of output or activity.

Predetermined Overhead Rate

An estimated rate used to allocate manufacturing overhead costs to individual products or job orders based on a specific activity measure, like labor hours or machine hours.