Which One of the Following Decreases Net Income but Does

question 60

Multiple Choice

Which one of the following decreases net income but does not affect the operating cash flow of a firm that owes no taxes for the current year?

• A)Indirect cost
• B)Direct cost
• C)Noncash item
• D)Period cost
• E)Variable cost

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Definitions:

Quantity Variances

The difference between the expected quantity of materials, labor, or overhead and what was actually used.

Direct Materials Cost

The cost of raw materials directly used in the manufacturing of a product.

Finished Product

A final product that has completed all stages of production and is ready for sale.

Activities

Activities refer to actions, tasks, or operations that are carried out by individuals or organizations, often aiming towards achieving specific goals or outcomes.