Operating Activities on the Statement of Cash Flows Include Activities

question 148

True/False

Operating activities on the statement of cash flows include activities that affect net income, current liabilities and current assets.

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Definitions:

Average Total Cost

This refers to the total cost per unit of output, calculated by dividing the total cost of production by the number of units produced.

Marginal Cost

The rise in expense incurred from manufacturing an extra unit of a product or service.

Shutdown Point

The level of operations at which a company does not benefit from continuing operations or producing any output due to high variable costs.

Output

The total amount of goods or services produced by an economic system or entity within a given period.