An Increase in Assets and an Increase in Liabilities Is

question 9

True/False

An increase in assets and an increase in liabilities is the same as saying assets have been debited and liabilities have been credited.

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Definitions:

Direct Materials

Raw materials that are directly traceable and integral to the finished product in the manufacturing process.

Selling Costs

All costs that are incurred to secure customer orders and get the finished product or service into the hands of the customer.

Indirect Costs

Costs that are not directly traceable to a single product or operation, such as overhead.

Opportunity Costs

The potential benefit missed out on when choosing one alternative over another.