Which One of the Following Relates to a Negative Change

question 109

Multiple Choice

Which one of the following relates to a negative change in net working capital?

• A)Increase in the inventory level
• B)Sale of net fixed assets
• C)Purchase of net fixed assets
• D)Increase in current assets and decrease in current liabilities for the period
• E)Increase in current liabilities with no change in current assets for the period

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Definitions:

Machine-Hours

A measure of production time, indicating how many hours machines are operated in the manufacturing process.

Manufacturing Overhead

All indirect costs associated with the production process, such as utilities, maintenance of factory equipment, and salaries of factory supervisors.

Job Cost

The total cost of materials, labor, and overhead allocated to a specific job or project.

Unit Product Cost

The cost assigned to a single unit of product, combining direct materials, direct labor, and manufacturing overhead expenses.