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direct method

(Dictionary)

Author:
Harold Averkamp, CPA, MBA

Definition

The direct method could refer to the method of preparing the statement of cash flows.

The direct method could also refer to the method of allocating a manufacturing facility’s service departments to its production departments.

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About the Author

Harold Averkamp

For the past 52 years, Harold Averkamp (CPA, MBA) has
worked as an accounting supervisor, manager, consultant, university instructor, and innovator in teaching accounting online. He is the sole author of all the materials on AccountingCoach.com.

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