The Main Disadvantage of the Direct Method of Reporting Cash

question 97

True/False

The main disadvantage of the direct method of reporting cash flows from operating activities is that the necessary data are often costly to accumulate.

---

Definitions:

Job Enlargement

The process of adding more tasks of similar difficulty to an employee's job role to increase job diversity.

Labour Specialization

The division of labor where individual workers specialize in doing part of a task or job, leading to increased efficiency and productivity.

Specialized Tools

Tools designed for specific tasks or functions, often used to improve efficiency and performance in particular applications.

Labour Costs

Expenses related to compensating employees for their work, including wages, benefits, and any associated taxes.