Which of the Following Would NOT Appear on a Statement

question 116

Multiple Choice

Which of the following would NOT appear on a statement of cash flows prepared using the direct method?

• A) Collections from customers
• B) Payments to suppliers
• C) Interest received
• D) Increase/decrease in current liabilities

Recognize strategies for addressing the inconsistency and inseparability challenges in service delivery.

Identify methods to reduce the negative impacts of service intangibility.

Appreciate the significance of the interaction between service providers and consumers in the co-creation of value.

Recognize the importance of managing idle production capacity in services.

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Definitions:

Fixed Costs

Costs that do not vary with the level of production or services provided.

Marginal Cost Curve

A graphical representation that shows how the marginal cost of producing additional units changes with the level of output.

Average Total Cost

The total cost of production (fixed and variable costs) divided by the total output or quantity produced.

Fixed Costs

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