GASB Requires ________ Method(s)for the Cash Flow Statement for Proprietary

question 13

Multiple Choice

GASB requires ________ method(s) for the cash flow statement for proprietary funds.

• A)the reconciliation
• B)the indirect
• C)the direct
• D)either the direct or indirect

---

Definitions:

Predetermined Overhead Rate

An estimated rate used to allocate manufacturing overhead to individual units of production based on a specific activity base.

Direct Labor-Hours

The total hours worked directly on the production of goods.

Manufacturing Overhead

All indirect costs associated with the production process, including costs related to factory operation but not directly traceable to the product, such as maintenance and utilities.

Work in Process

Inventory that is in the production process but is not yet completed.