Examlex
Which of the three types of activities reported on the statement of cash flows is the most critical for a company's long-term survival?
Direct Materials
Substances that can be directly linked to the manufacturing of a particular item.
Direct Labor
Labor costs that can be easily traced to individual units of product; essentially the wages paid to workers who directly manufacture goods.
Manufacturing Overhead
All indirect manufacturing costs, including but not limited to utilities, rent, and salaries of supervisors.
Direct Materials Cost
The expense incurred for raw materials that are directly traceable to the production of specific goods or services.
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