The Following Costs Were Incurred in May:
Conversion Costs During

question 64

Multiple Choice

The following costs were incurred in May:
Conversion costs during the month totaled:
$\begin{array}{lrr} \text { Direct materials. } &£ 41,000\\ \text { Direct labour. } &£ 13,000\\ \text { Manufacturing overhead. } &£ 46,000\\ \text { Selling expenses. } &£ 18,000\\ \text { Administrative expenses. } & £ 15,000\\\end{array}$

• A)£54,000.
• B)£133,000.
• C)£59,000.
• D)£87,000.

---

Definitions:

Free Cash Flow

The amount of cash a company generates after accounting for cash outflows to support operations and maintain its capital assets.

Capital Expenditures

Funds used by a company to acquire or upgrade physical assets such as property, industrial buildings, or equipment to improve its long-term performance and efficiency.

Cash Dividends

Profits paid by a corporation to its shareholders in the form of cash.

Free Cash Flow

The amount of cash a company generates after accounting for capital expenditures, effectively showing the liquidity available for expansion, dividends, or debt repayment.