Which of the Following Is a Source of Cash Flows

question 112

Multiple Choice

Which of the following is a source of cash flows?

• A) amortization
• B) interest expense
• C) cost of goods sold
• D) taxes

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Definitions:

Variable Costs

Expenses that fluctuate in direct proportion to the production or sales volume, for instance, direct labor and raw materials.

Budgeting

The process of creating a plan to spend your money, allocating financial resources for various purposes over a specified period.

Machine-hours

A measure of the operating time of machines or equipment, typically used as a basis for allocating manufacturing overhead in product costing.

Supplies Costs

Supplies costs are expenses related to the consumable items used in the operation of a business, not directly part of the finished product.