If Net Cash Flows from Operating Activities Were $296,000,net Income

question 145

Multiple Choice

If net cash flows from operating activities were $296,000,net income were $200,000,and sales were $2,000,000,cash flows to sales would equal (Round amounts to one decimal place)

• A)10.0 percent.
• B)$96,000.
• C)14.8 percent.
• D)0.7 times.

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Definitions:

Machine-Hours

A measure of production time which quantifies the number of hours a machine is in operation.

Overhead Applied

The portion of overhead costs that are allocated to products or cost objects based on a predetermined overhead rate.

Customizing Department

A segment within a manufacturing or service company dedicated to modifying products or services to meet specific customer requests or needs.

Job-Order Costing System

A cost accounting system that assigns costs to specific production batches or jobs, used in custom or unique product manufacturing.