Since Depreciation Is a Non-Cash Charge It Does Not Appear

question 50

True/False

Since depreciation is a non-cash charge it does not appear nor have an effect on the cash budget.

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Definitions:

Activity Cost Pool

A “bucket” in which costs are accumulated that relate to a single activity measure in an activity-based costing system.

Measure Of Activity

A metric used to gauge the level of a specific operation or process over a given time period.

Activity Rate

A rate used to allocate indirect costs to products or services, based on a specific activity or driver.

Product Design

The process of creating, defining, and managing the specifications of a physical product or its system to solve a particular problem.