All of the Following Are Cash Flows from Operations EXCEPT

question 7

Multiple Choice

All of the following are cash flows from operations EXCEPT

• A) increases or decreases in cash.
• B) net income.
• C) depreciation.
• D) increases or decreases in accounts payable.

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Definitions:

Variable Cost

Costs that change in proportion to the level of goods or services produced, such as materials and labor.

Predetermined Overhead Rate

A calculated rate used to allocate overhead costs to products or services, often based on a specific activity such as labor hours or machine hours.

Special Order

An order for products or services that is outside the company's normal scope of work, often requiring a custom quotation or pricing.

Direct Labor

The workforce costs directly involved in producing a product or delivering a service, excluding indirect labor expenses.