Under the Double-Entry System of Accounting, a Debit Is Always

question 82

True/False

Under the double-entry system of accounting, a debit is always a negative entry.

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Definitions:

Predetermined Overhead Rate

A rate used to assign overhead costs to products or services, calculated by dividing estimated overhead by an allocation base such as labor hours.

Predetermined Overhead Rate

A pre-determined rate used to allocate manufacturing overhead expenses to products, based on a specified activity measure, and calculated prior to the start of a period.

Normal Cost System

A costing system in which overhead costs are applied to a job by multiplying a predetermined overhead rate by the actual amount of the allocation base incurred by the job.

Job Cost Sheet

A document that records the costs associated with a specific job or batch of products, tracking direct labor, direct materials, and applied overhead.