The Debit Side of All Accounts Decreases the Account Balance

question 117

True/False

The debit side of all accounts decreases the account balance and the credit side of all accounts increases the account balance.

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Definitions:

Unit Sales Price

The amount that a business charges for one unit of its product or service.

High-Low Method

A technique used in cost accounting to estimate variable and fixed costs based on the highest and lowest levels of activity.

Variable Cost Element

A cost that varies directly with the level of production or sales volume, such as materials and direct labor.

Fixed Cost Element

The portion of total costs that does not change with the variation in activity level or production volume.