The Following Data Relate to Austin Corporation for Last Year

question 63

Multiple Choice

The following data relate to Austin Corporation for last year: What is the net cash provided by operating activities for last year on the statement of cash flows for Austin Corporation?

• A)$212,000
• B)$114,000
• C)$165,000
• D)$103,000

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Definitions:

Abnormal Spoilage Costs

Abnormal spoilage costs are the costs associated with the waste or loss of materials, labor, or overheads that occur due to unforeseen circumstances or inefficiencies beyond standard production spoilage rates.

Control Quality

The process of ensuring that a product or service meets a certain set of criteria or standards before it is completed or delivered.

Normal Spoilage

The expected amount of waste or loss of materials during the production process, considered a standard cost in manufacturing.

Unit Cost

The calculated cost to produce one unit of a product, taking into account all relevant costs of production.