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Under indirect method net income from normal income statement is adjusted for non cash items to arrive at cash flow from operating activities. As salaries and purchases are already accounted for in normal income that;s why it is not reported otherwise it will count twice.

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11y ago

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Which one of the following is a product cost indirect labor office salaries sales person's salaries or advertising costs?

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What is the difference between variable overhead cost variance and fixed overhead variance?

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