Activities That Affect Long-Term Assets Are

question 20

Multiple Choice

Activities that affect long-term assets are:

• A) operating activities.
• B) investing activities.
• C) financing activities.
• D) noncash investing and financing activities.

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Definitions:

Cost of Goods Sold

The expenses directly associated with manufacturing the products a company sells.

Underapplied Overhead

A scenario in which the manufacturing overhead costs that were budgeted fall short of the overhead costs that were actually incurred.

Predetermined Overhead Rates

Estimated rates used to allocate fixed and variable manufacturing overhead costs to products or job orders, based on expected activity levels and expenses.