In an ABC System Costs Are First Assigned to Cost

question 75

True/False

In an ABC system costs are first assigned to cost pools, then always to units of product.

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Definitions:

Warranty Expense

Costs associated with the repair or replacement of faulty products that a company sells, under its warranty policy.

Journal Entry

A record of a financial transaction in the general journal or other ledger, representing debits and credits to accounts.

Fringe Benefits

Benefits provided to employees in addition to wages and salaries.

Revenues And Expenses

The income a business earns from its operations and the costs incurred to generate that income.