ABC Is an Accounting Method for Allocating Direct and Fixed

question 49

True/False

ABC is an accounting method for allocating direct and fixed costs to individual products.

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Definitions:

Depreciation Expense

This represents the allocation of the cost of a tangible asset over its useful life, reflecting the asset's consumption, wear and tear, or obsolescence.

Useful Life

The estimated duration of time that an asset is expected to remain functional and productive for its intended purpose, affecting depreciation calculations.

Straight-Line Basis

A method of calculating depreciation or amortization by evenly allocating the cost of an asset over its useful life.

Salvage Value

The estimated value remaining in an asset after it has served its purpose.