When Calculating the Total Cost for a Cost Object It

question 80

True/False

When calculating the total cost for a cost object it is necessary to include both direct and indirect costs.

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Definitions:

Adjusted Trial Balance

An inventory of every account, including updated balances following the posting of adjusting entries, that serves as the basis for generating financial statements.

Trial Balance

A bookkeeping report that lists all the balances in each account ledger in two columns, debits and credits, ensuring that total debits equal total credits.

Adjusting Entries

Entries made in accounting books at the end of the cycle to rightly allocate the period's earnings and financial outgoings.

Depreciation Expense

The systematic allocation of the cost of a tangible asset over its useful life, reflecting the loss of value over time.