The Account Analysis Method Can Be Used to Estimate Costs

question 140

True/False

The account analysis method can be used to estimate costs by classifying accounts in the general ledger as variable.

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Definitions:

Percent

A mathematical term describing one hundredth of a particular quantity; a unit of proportion or rate expressed as a fraction of 100.

Reserves

Funds or assets that banks must hold either in their own vaults or on deposit with a central bank, to meet expected withdrawal demands or regulatory requirements.

Reserve Requirement

A regulation that sets the minimum fraction of customer deposits and notes that each bank must hold as reserves, rather than loaning out or investing.

Loans

Borrowed sums of money that must be repaid with interest over a predetermined period.