In the cash budget, which of the following is not an item of cash outflow for operations?
A)Payments for marketing and administrative costs.
B)Payments to direct labor.
C)Payments to purchase a machine that will last for several years.
D)Expenditures on manufacturing overhead.
E)All of the above are items of cash outflow for operations.

Question

Quizplus · Accepted Answer

Payments to purchase a machine that will last for several years refers to a capital expenditure, not an item of cash outflow for operations. The other options are all items of cash outflow for operations.

In the Cash Budget, Which of the Following Is Not