Graciana Corporation's Most Recent Comparative Balance Sheet and Income Statement

question 17

Multiple Choice

Graciana Corporation's most recent comparative balance sheet and income statement appear below: Cash dividends were $28.
-The net cash provided by (used by) operations for the year was:

• A) $146
• B) $104
• C) $179
• D) $21

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Definitions:

Absorption Costing

A strategy for calculating product costs that includes every aspect of manufacturing expenses: direct materials, direct labor, and all overhead costs, both variable and fixed.

Markup

The amount added to the cost of goods to cover overhead and profit; a percentage of cost.

Direct Labor

Labor costs directly associated with the manufacture of specific goods or the delivery of specific services, representing wage expenses for personnel involved in production.

Absorption Costing

An accounting strategy where the price of manufacturing a product is determined by adding up expenses on direct materials, direct labor, and every overhead cost, be it variable or fixed.