Answer:
b. direct labor and factory overhead
Explanation:
The conversion cost is that convert which is used to convert the raw material to the finished goods inventory. It is a combination of the direct labor cost and the factory overhead or manufacture overhead cost.
It can be fixed or variable marinating costs only. It does not include direct material cost
It is computed by taking a difference of production cost and raw material cost
Hence option b is correct
Answer
The answer and procedures of the exercise are attached in the following archives.
Step-by-step explanation:
You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.
Answer:
b. A deduction from net income in determining cash flows from operating activities.
Explanation:
An increase in prepaid expenses is deducted from Net Income. The reason behind it very simple and no rocket science is there. Lets take Insurance as a prepaid expense. You Paid in-advance for Insurance, it increase your current asset that is Prepaid Insurance BUT at the same time cash went out of the Business.
I hope I made it clear to you. If you still have any queries, feel free to ask me.
Thanks!
Well a bond is a government loan where they take ur money and pay u back with interest usually low interest tho
