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Sequencing is not as much of a concern when several activities use a common resource.
Service Department Costs
The expenses incurred by support departments within a company that do not directly contribute to profit but provide necessary services.
Operating Departments
Sections or divisions within a business that are responsible for carrying out its core operations, as opposed to support or administrative departments.
Direct Method
A way of preparing a cash flow statement where actual cash flows from operating activities are listed directly.
Service Department Costs
Expenses associated with departments that do not directly produce goods but provide support services, such as maintenance or security.
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