What type of activities would include the purchase of machinery for production?

The purchase of machinery for production is classified as investing activities because it involves acquiring long-term assets that will be used to produce goods or services. Investing activities include transactions related to the purchase and sale of physical assets, such as property, plant, and equipment, which are essential for a company’s operations.

In this context, investing activities typically encompass capital expenditures that enhance the company's ability to generate future income. The purchase of machinery directly relates to the company’s capacity for production and signifies a commitment of resources towards the long-term operational efficiency of the business.

This is distinct from operating activities, which relate to the day-to-day functions of the business, or financial activities, which involve transactions related to financing the company, such as issuing debt or equity. Labor activities are not a recognized category in financial statements but refer to the employment of labor, which is part of operational management rather than a distinct financial activity.