It Is Easier to Allocate Indirect Costs to the Products

question 49

True/False

It is easier to allocate indirect costs to the products that caused those costs if you use the ABC system rather than traditional costing systems.

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Definitions:

Closing Entry

A journal entry made at the end of an accounting period to transfer the balances of temporary accounts to a permanent account.

Adjusting Entry

An accounting record posted at the closing of a financial period to assign revenues and expenses to the time they were incurred.

Closing Entry

An accounting action that transfers all temporary account balances to permanent accounts at the end of an accounting period, preparing the books for the next period.

Satiety

is the feeling of being full or satisfied, typically experienced after eating, which reduces the desire to eat more.