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Kisachek [45]
3 years ago
11

A(n) _____________ activity includes those transactions and events that determine net income, including the purchase of merchand

ise, the sale of goods and services to customers, and expenditures to operate the business. Multiple choice question. operating financing noncash investing
Business
1 answer:
expeople1 [14]3 years ago
5 0

An operating activity includes those transactions and events that determine net income, including the purchase of merchandise, the sale of goods and services to customers, and expenditures to operate the business.

A business operates through certain actions that manage and keep the business alive. Such operating activities may include more than a couple of processes that help the business stay afloat.

  • The operating activities of a business include all the things that a company does to provide an ongoing flow of products and services to the market.
  • Such activities may include setting a strategy, keeping accounts of the transactions like purchasing of merchandise, the sale of goods and services to customers, and the expenditures incurred to operate the business.
  • Operating activities are important as they control the cash flow of the business and maybe the sole source of ensuring the business stays alive.
  • It is directly linked to the deep-end workings of the company, like the production, sale, distribution, etc. of the company.

Thus, operating activities such as the determination of the incomes, purchase of merchandise, sale of goods and services, etc. all play a huge part in the successful running of the company. It's actions such as these that determine the success or failure of the company.

Learn more about cash flow activities here:

brainly.com/question/14122060

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During the first month of operations ended August 31, Kodiak Fridgeration Company manufactured 48,000 mini refrigerators, of whi
Anvisha [2.4K]

Answer:

Part a.

Income statement based on the absorption costing concept.

Sales                                                                                      $8,800,000.00

Less Cost of Sales

Beginning  Inventory                                          $0

Add Manufacturing Cost                          $6,048,000.00

Less Ending Inventory                                ($504,000.00) ($5,544,000.00)

Gross Profit                                                                            $3,256,000.00

Less Expenses :

Selling and administrative expenses:

Variable                                                      $528,000.00

Fixed                                                           $352,000.00     ($880,000.00)

Net Income/(loss)                                                                   $2,376,000.00

Part b.

Income statement based on the variable costing concept.

Sales                                                                                      $8,800,000.00

Less Cost of Sales

Beginning  Inventory                                          $0

Add Manufacturing Cost                          $5,520,000.00

Less Ending Inventory                                ($460,000.00) ($5,060,000.00)

Contribution                                                                            $3,740,000.00

Less Expenses :

Fixed manufacturing cost                          $528,000.00

Selling and administrative expenses:

Variable                                                      $528,000.00

Fixed                                                           $352,000.00      ($1,408,000.00)

Net Income/(loss)                                                                    $2,332,000.00

Part c.

Reason : Fixed Costs deferred in Ending Inventory in Absorption Costing has resulted in a higher Income.

Explanation:

<u>Units in Ending Inventory Calculation :</u>

Production                             48,000

Less Sales                            (44,000)

Ending Inventory                    4,000

Absorption Costing Calcs

<u>Variable Manufacturing Costs</u>

Direct materials                         $3,360,000.00

Direct labor                                 $1,344,000.00

Variable manufacturing cost        $816,000.00

Fixed manufacturing cost            $528,000.00

Total                                           $6,048,000.00

Ending Inventory =  $6,048,000.00 × 4,000 / 48,000

                            =   $504,000

Variable Costing Calcs

<u>Variable Manufacturing Costs</u>

Direct materials                         $3,360,000.00

Direct labor                                 $1,344,000.00

Variable manufacturing cost        $816,000.00

Total                                           $5,520,000.00

Ending Inventory =  $5,520,000.00 × 4,000 / 48,000

                            =   $460,000

4 0
3 years ago
The budgeted variable selling and administrative expense is calculated by multiplying the budgeted unit sales by the variable se
postnew [5]

Answer: True

Explanation:

Variable selling and administrative expenses increase with the number of sales so in order to get them, one needs to multiply the number of sales by the variable and administrative expenses.

This also goes for the budgeted variable selling expenses. To find out these costs, multiply the expected variable and admin expenses by the budgeted number of sales. The amount you get will show the amount of variable expenses to budget based on the sales you budgeted.

3 0
2 years ago
Under what circumstances might stockholders be displeased with a corporation's performance?
Minchanka [31]
I would say the shareholders could disapprove of the performance of their company if it was to consistently to lose money over say several quarters with no signs of improvement or no encouragement by management that this was a temporary situation,
6 0
3 years ago
What’s does stockbroker mean?
Flauer [41]

Answer:

a broker who buys and sells securities on a stock exchange on behalf of clients.

it's the one that says person who buys or sells equities

8 0
3 years ago
Environmental sustainability is ensuring that our natural resources can be used
Julli [10]

Answer:

The statement is: False.

Explanation:

Environmental sustainability refers to the set of efforts individuals and organizations make to use the natural resources an environment offers to satisfy people's needs while taking steps towards the conservation of those resources so they can be reused in the future. Environmental sustainability aims to avoid the indiscriminate exploitation of resources before some of them are extinct.  

<em>The most common example of environmental sustainability is reforestation or planting trees every time they are cut down to diminish deforestation effects.</em>

6 0
3 years ago
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