Refer to the Table Below

question 48

Multiple Choice

Refer to the table below. The average cost of 5 units of activity is:

• A) $4
• B) $6
• C) $8
• D) $10

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Definitions:

Operating Activities

Transactions and events that enter into the determination of net profit or loss, involving the primary revenue-producing activities of the enterprise and other activities that are not investing or financing activities.

AASB 107

Australian Accounting Standards Board rule 107, which specifies requirements for the presentation of cash flow statements.

Cash Flow Information

provides details about a company's cash inflows and outflows over a period.

Direct Method

A cash flow statement presentation technique that lists specific types of cash inflow and outflow transactions directly.