The Following Costs Are Included in a Recent Summary of Data

question 194

Multiple Choice

The following costs are included in a recent summary of data for a company: advertising expense,$85,000; depreciation expense - factory building,$133,000; direct labor,$250,000; direct material used,$300,000; factory utilities,$105,000; and sales salaries expense,$150,000.Determine the dollar amount of overhead costs.

• A) $1,023,000
• B) $550,000
• C) $488,000
• D) $235,000
• E) $238,000

Ability to differentiate between the direct and indirect methods of reporting cash flows from operating activities and their implications.

Comprehend the adjustments needed to convert net income to net cash provided by operating activities using the indirect method.

Identify and adjust the effects of changes in working capital accounts on cash flows using the direct method.

Assess how changes in balance sheet accounts impact the cash flow statement.

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Definitions:

Learning Organization

An organization that facilitates the learning of its members and continuously transforms itself to better respond to changes in the environment.

Stakeholders

Individuals or groups who have an interest in the decisions and actions of an organization because they are affected by or can affect its outcomes.

New Knowledge

Information, understandings, or insights that have been discovered or developed, contributing to the expansion of a field or discipline.

HR Policies

The formal rules and guidelines that businesses establish to manage their employees and to set clear expectations about workplace procedures.