Given Below Is a List of Items That May Be

question 9

Multiple Choice

Given below is a list of items that may be reported on a statement of cash flows.Identify each as one of the following using the indirect method:
-Payment of research and development costs

• A)Operating
• B)Investing
• C)Financing
• D)Not separately reported on a statement of cash flows

---

Definitions:

Fixed General Factory Overhead

Costs associated with operating a factory that do not vary with the level of production, such as factory rent, insurance, and salaries of managers.

Variable Cost

Expenses that change in proportion to the activity of a business, such as cost of goods sold or materials costs.

Fixed Cost

Costs that do not vary with the level of output or production, such as rent, salaries, and insurance premiums.

Activity Level

A measure of the volume of production or operations, often used to plan and control various business activities.