Which One of the Following Will Decrease Net Working Capital

question 41

Multiple Choice

Which one of the following will decrease net working capital of a firm?

• A) A decrease in accounts payable
• B) An increase in inventory
• C) A decrease in accounts receivable
• D) An increase in the firm's checking account balance
• E) A decrease in fixed assets

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Definitions:

Traditional Costing System

A costing methodology that assigns manufacturing overhead costs to products based on volume-related measures like labor hours or machine hours.

Direct Labor-Hours

The total hours worked by employees directly involved in the manufacturing process or providing service, used to allocate expenses in job costing.

Product E76I

A specific product, possibly identified by a unique identifier "E76I," without further contextual information to define it.

Milling Department

A division or area in a manufacturing facility where milling processes are carried out to shape materials into finished products or components.