If Scheduling Delays Occur,and a Particular Job Must Be Worked

question 15

Multiple Choice

If scheduling delays occur,and a particular job must be worked on during an overtime period,the overtime premium cost would most likely be charged to:

• A)the job worked on during the overtime period.
• B)manufacturing overhead.
• C)finished goods inventory.
• D)work in process.

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Definitions:

Indirect Method

A way of reporting cash flows from operating activities by starting with net income and adjusting for non-cash transactions.

Retained Earnings

The portion of net income that is not distributed to shareholders as dividends but is retained by the company to reinvest in its core business or to pay debt.

Reported Net Income

The total profit or loss of a company after all expenses and taxes have been subtracted from total revenue, as shown on the income statement.

Direct Method

An approach to preparing the cash flow statement where actual cash inflows and outflows from operational activities are listed.