Which of the Following Is Not True of the Terms

question 18

Multiple Choice

Which of the following is not true of the terms debit and credit?

• A) They can be abbreviated as Dr. and Cr.
• B) They can be interpreted to mean increase and decrease.
• C) They can be used to describe the balance of an account.
• D) They can be interpreted to mean left and right.

---

Definitions:

Safety Stock

An additional quantity of an item held in inventory to reduce the risk of stockouts.

Direct Materials

Raw materials that are directly attributable to the product being manufactured and can be easily identified and measured.

Budgeted Production

The planning of how many units of a product a company aims to produce within a specific period.

Activity-based Budgeting

A budgeting approach based on the activities that incur costs within an organization, focusing on managing business activities that drive costs.