Which of the Following Activities Result in an Increase in a Firm's

question 108

Multiple Choice

Which of the following activities result in an increase in a firm's cash?

• A)Decrease fixed assets
• B)Decrease accounts payable
• C)Pay dividends
• D)Repurchase of common stock

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Definitions:

Absorption Costing

A cost accounting method that includes all manufacturing costs—direct materials, direct labor, and both fixed and variable manufacturing overhead—in the cost of a product.

Nonmanufacturing Costs

Expenses not directly related to the production of goods, such as selling, general, and administrative expenses.

Job-Order Costing

An accounting method that tracks costs individually for each job, suitable for manufacturing operations that produce goods based on specific customer orders.

Unit Product Cost

The total cost associated with producing one unit of product, including direct materials, direct labor, and allocated overhead.