FlintCo Purchases Additional Office Equipment to Better Serves Its Customers

question 18

Multiple Choice

FlintCo purchases additional office equipment to better serves its customers.This cash purchase is reported in the statement of cash flows as what type of activity?

• A)Company activity.
• B)Investing activity.
• C)Financing activity.

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Definitions:

Manufacturing Cost

The total expense related to the manufacturing of goods, including materials, labor, and overhead costs.

Quantity Discounts

Discounts offered to buyers for purchasing large quantities of goods, aimed at incentivizing bulk purchases and increasing sales volume.

Multi-Block Tariffs

A pricing structure used by utilities and service providers where the cost per unit of service varies with the amount of usage, often increasing in blocks or tiers as usage rises.

Unit Quantity Discounts

Price reductions given to customers for purchasing goods in large volumes or quantities.