An Increase in Which One of the Following Will Increase

question 28

Multiple Choice

An increase in which one of the following will increase the operating cash flow?

• A) employee salaries
• B) office rent
• C) building maintenance
• D) equipment depreciation
• E) equipment rental

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Definitions:

Wells Serviced

The number of oil or gas wells undergoing maintenance, repair, or installation services over a period, often indicating the performance level of a service company in the energy sector.

Flexible Budget

A budget designed to adapt based on fluctuations in activity levels or volume.

Servicing Materials

Materials used in the maintenance and repair of products or equipment, not typically included in the direct costs of manufacturing the product.

Spending Variance

The difference between the actual amount spent and the budgeted amount for a particular category or item.