Which of the Following Would Not Be an Operating Activity

question 29

Multiple Choice

Which of the following would not be an operating activity cash outflow?

• A) taxes paid
• B) acquisition of goods and services
• C) acquisition of intangible assets
• D) employee benefits paid

---

Definitions:

Variable Cost

Variable cost varies directly with the level of output, including costs such as raw materials and direct labor, adjusting according to production volume.

Machine Hours

A measure of the time machines are run in the manufacturing process, used to allocate manufacturing overhead costs.

Copper Concentrate

A form of copper ore that has been crushed and treated to increase its purity and concentration before further processing or sale.

Step-variable Costs

Costs that remain fixed for a set level of production or activity, but can change in steps when a certain threshold is exceeded.