If the Amount of Indirect Materials Needed for Production Is

question 8

True/False

If the amount of indirect materials needed for production is deemed to be insignificant,it should not be included in the direct materials budget.

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Definitions:

Normal Balance

The side of an account where increases are recorded, which is the debit side for assets and expenses, and the credit side for liabilities, equity, and revenue.

Rent Expense

An expense account that records the cost incurred by a business to utilize property or equipment for operations.

Debit

An accounting entry that increases an asset or expense account, or decreases a liability or equity account, reflected on the left side of an account.

Credit

An accounting entry that either increases a liability or equity account, or decreases an asset or expense account. It is also used to refer to the provision of resources by a credit provider to a borrower.