Which of the Following Is a Value-Adding Cost

question 114

Multiple Choice

Which of the following is a value-adding cost?

• A) Depreciation on personnel department equipment
• B) Depreciation on factory equipment
• C) Depreciation on office equipment
• D) Depreciation on sales department equipment

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Definitions:

Direct Method

A cash flow forecasting technique that involves estimating cash inflows and outflows from actual sources and uses, as opposed to indirect adjustments.

Selling and Administrative Expenses

Expenses that are not directly tied to the production of goods or services, including costs related to sales, marketing, and general management.

Comparative Balance Sheet

A financial statement that presents the financial position of a company at two or more different points in time, side-by-side, to facilitate comparison.

Indirect Method

An accounting technique used to prepare the cash flow statement, adjusting net income for changes in non-cash working capital and non-operational gains and losses.