Cash and Payments Received from Customers Would Be Classified on the Statement

question 35

Multiple Choice

Cash and payments received from customers would be classified on the statement of cash flows as which of the following?

• A) cash flows from financing activities
• B) cash flows from investing activities
• C) revenue
• D) cash flows from operating activities

Identify and differentiate between controllable and non-controllable costs.

Analyze and compute contribution margin and manufacturing margin under variable costing.

Determine the effect of sales and production levels on operating income and inventory valuation.

Understand the significance of contribution margin ratio and its calculation.

---

Definitions:

Piecework Rate

Rate of pay per unit produced.

Production Workers

Individuals involved in the manufacturing or assembly phase of production, responsible for operating machinery, building goods, and maintaining efficiency on the production line.

Straight Piecework Plan

A compensation system where workers are paid a fixed rate for each unit produced or action performed, regardless of time.

Incentive Pay

Compensation above the base salary offered to employees as a motivation for achieving performance targets.