In the Closing Process for Corporations, Net Income Is Closed

question 92

True/False

In the closing process for corporations, net income is closed to the retained earnings account.

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Definitions:

Batch-Level Activity

Activities and costs incurred for a batch of products, rather than for each individual unit or the entire production process.

Product-Level Activity

Activities that are directly associated with a specific product, leading to costs that can be directly attributed to the production of that product.

Facility-Level Activity

Activities that support the entire organization and cannot be traced to individual products or services, such as building security and property taxes.

Activity Rate

The cost driver rate used in activity-based costing to allocate overhead costs to products or services based on specific activities.