Creditor and Stockholder Transactions Are Considered ________ Activities

question 84

Multiple Choice

Creditor and stockholder transactions are considered ________ activities.

• A) noncash
• B) financing
• C) operating
• D) investing

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Definitions:

Direct Manufacturing Cost

Expenses directly related to the production of goods, including labor and materials.

Incremental Manufacturing Cost

The extra expense associated with manufacturing an additional unit of a product.

Contribution Margin

The amount remaining from sales revenue after variable expenses are subtracted, contributing towards covering fixed costs and profit.

Variable Selling Expenses

Costs that fluctuate with the level of sales, such as commissions or shipping fees.