Which of the Following Drives Work-In-Process Inventory Levels Higher

question 78

Multiple Choice

Which of the following drives work-in-process inventory levels higher?

• A) Machine breakdowns
• B) Production rate losses
• C) Rework processes
• D) All of the above

---

Definitions:

Investing Cash Flow

Cash inflows and outflows related to transactions involving the acquisition and disposal of long-term assets and investments not included in cash equivalents.

AASB 107

An Australian accounting standard that specifies how the movements in cash and cash equivalents should be presented in the statement of cash flows.

Direct Method

A way to present the cash flow statement, showing actual cash flows from operating activities instead of adjusting net income for accruals.

Operating Activities

The principal revenue-producing activities of an entity and other activities that are not investing or financing activities.