Operating Activities Include All Except

question 134

Multiple Choice

Operating activities include all except:

• A)a decrease in accounts receivable.
• B)an increase in wages payable.
• C)the payment of dividends to shareholders.
• D)a decrease in accounts payable.

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Definitions:

Direct Labor-Hours

The totality of hours devoted by workers directly engaged in the fabrication of products.

Manufacturing Overhead

All indirect costs associated with the manufacturing process, including utilities, rent, and salaries for non-direct labor, that are not directly traceable to specific units produced.

Overapplied Manufacturing Overhead

A scenario in which the allocated manufacturing overhead costs exceed the actual overhead costs incurred.

Work in Process Inventory

Items partly finished in manufacturing but not yet ready for sale, representing a stage between raw materials and final products on the balance sheet.