There Is a Homogeneous Relationship Between the Individual Cost Items

question 174

True/False

There is a homogeneous relationship between the individual cost items in the dependent variable pool and the cost driver when each activity whose costs are included in the dependent variable has the same cost driver.

---

Definitions:

FICA-Medicare

A federal tax deducted from employees' paychecks and matched by employers to fund the Medicare program.

SUTA Payable

A liability account showing the amounts due to the state for state unemployment taxes, payable by employers based on established rates.

Journal Entry

The method by which transactions are recorded in the company's ledger, noting debits and credits.

Debit

In accounting, a debit is an entry that increases asset or expense accounts, or decreases liability, equity, or revenue accounts.