Depreciation Expense Is Not Reported on the Statement of Cash

question 126

True/False

Depreciation expense is not reported on the statement of cash flows under the direct method.

---

Definitions:

Job A496

A specific work order or project identifier used to track and manage a particular job within a company.

Total Job Cost

The complete cost of a specific job or project, including materials, labor, and overhead.

Predetermined Manufacturing Overhead Rate

An estimated rate used to assign manufacturing overhead costs to products or job orders, calculated before the periods begins based on expected annual overhead costs and activity levels.

Manufacturing Overhead

All indirect manufacturing costs, including costs related to running the production facility but not directly linked to individual products.