Where Would Cash Payments for Insurance Appear in the Statement

question 46

Multiple Choice

Where would cash payments for insurance appear in the statement of cash flows?

• A)Operating activities
• B)Financing activities
• C)Investing activities
• D)Capital activities
• E)None of the answer choices is correct.

---

Definitions:

Fixed Costs

Regular expenses that an entity incurs, which are not affected by changes in business activity levels, such as lease payments and insurance premiums, essential for financial planning.

Machine Setup Costs

Expenses incurred to prepare machinery for production, including calibration, cleaning, and testing.

Batch Level

Refers to the classification in cost accounting that associates costs with specific batches of goods or services rather than with individual units or processes.

Unit-level Costs

Costs that are incurred for every unit produced, directly proportional to the production volume.