Which Item Should a Company Report Directly in Its Monthly

question 34

Multiple Choice

Which item should a company report directly in its monthly cash budget?

• A)its monthly depreciation expense
• B)cash proceeds from selling one of its divisions
• C)accrued interest on zero coupon bonds that it issued
• D)new shares issued in a stock split

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Definitions:

Assembly Department

A segment within a manufacturing facility where parts are put together to form a finished product.

Predetermined Overhead Rate

is an estimated rate used to allocate manufacturing overhead costs to individual products or job orders based on a specific activity base.

Finishing Department

The final stage in the manufacturing process where products are completed, packaged, and prepared for delivery.

Direct Labor-Hour

A measure of the work time spent by employees who are directly involved in the production process.