Revenue and Expense Accounts Are Permanent (Real) Accounts and Should

question 58

True/False

Revenue and expense accounts are permanent (real) accounts and should not be closed at the end of the accounting period.

---

Definitions:

Direct Materials Cost

The cost of raw materials directly used in the production of a product, easily identifiable and assignable to the product.

Activity-Based Costing System

A costing method that assigns costs to products or services based on the resources they consume and the activities they require.

Activity Cost Pools

A grouping of all the costs related to performing a specific activity, used in activity-based costing to allocate costs more precisely.

Overhead Cost Per Unit

The amount of overhead expense allocated to each unit of production.