State the Three Cash Flow Classifications That Are Reported Within

question 13

Essay

State the three cash flow classifications that are reported within a statement of cash flows and describe the primary activities included in each.

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Definitions:

Direct Labor-Hour

A measure of the labor time directly involved in the manufacturing process or service delivery, often used in costing and budgeting.

Budgeted Production

The planned level of output a company aims to achieve in a specific period, used for preparing budgets and setting production goals.

Direct Materials Purchase Budget

A financial plan that estimates the raw materials to be purchased to meet production needs and inventory policy requirements.

Ending Inventories

The value or quantity of goods available for sale or use at the end of an accounting period.