Examlex
By pooling cash resources centrally firms can:
Support Department Costs
Expenses related to departments that do not directly contribute to the production of goods or services but provide necessary support, such as IT and HR.
Support Activity Costs
Expenses related to functions that assist the core operations of a business, such as human resources or accounting, which do not directly contribute to the production of goods or services.
Activity-Based Costing
A costing method that assigns overhead and indirect costs to related products and services based on the activities they require.
Direct Method
A cash flow statement preparation method that lists specific classes of gross cash receipts and payments.
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