Which of the Following Would Not Be Classified as an Operating

question 40

Multiple Choice

Which of the following would not be classified as an operating activity?

• A) interest expense
• B) income taxes
• C) payment of dividends
• D) selling expenses

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Definitions:

Total Cost

The full amount of expenses incurred by a firm in the production of goods or services, including both fixed and variable costs.

Marginal Cost

The increase in total cost that arises from producing one additional unit of a good or service.

Sod

A layer of earth in which the roots of grass are embedded, commonly used for lawns, golf courses, and sports fields to quickly establish a green surface.

Marginal Costs

The expense incurred from the production of one more unit of a product or service.