On a Statement of Cash Flows(indirect Method),which Line Item Is

question 19

Multiple Choice

On a statement of cash flows(indirect method) ,which line item is NOT reported as an operating activity?

• A)Depreciation expense
• B)Net income
• C)Increase in inventory
• D)Repayment of long-term debt

---

Definitions:

Variable Costing

An accounting method that assigns only variable production costs to inventory and products; fixed costs are expensed as incurred.

Unit Product Cost

The total cost incurred to produce, purchase, or manufacture one unit of a product, including direct material, direct labor, and manufacturing overhead.

Variable Costing

A financial recording technique that factors in only direct materials, direct labor, and variable manufacturing overhead as part of the product's costing.

Total Gross Margin

The total amount of revenue a company retains after incurring the direct costs associated with producing the goods it sells and the services it provides.