What Is an Investing Activity

question 46

Multiple Choice

What is an investing activity?

• A)Activities involving the acquisition and disposal of long-term assets.
• B)Activities involving changes in the size and composition of the contributed equity.
• C)Activities involving the principal revenue-producing activities of the entity.
• D)Activities that do not involve cash.

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Definitions:

Volume Variance

The difference between the expected volume of sales or production and the actual volume, which can impact costs and profits.

Denominator Level

In costing, refers to the level of activity or volume used to allocate fixed costs to units of production.

Standard Hours Allowed

The time allocated for a job or process to be completed, based on efficiency and productivity standards.

Actual Direct Materials

The actual amount of raw materials used in the production process.