Debits Increase Asset Accounts and Decrease Liability Accounts

question 24

True/False

Debits increase asset accounts and decrease liability accounts.

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Definitions:

Activity Pool

A way to assign costs in cost accounting, grouping all the cost inputs associated with a specific activity.

Estimated Activity Base

A projection of the level or volume of activity used in activity-based costing for allocating indirect costs.

ABC Product Costing System

Activity-Based Costing (ABC) is a method that assigns overhead and indirect costs to related products and services based on the activities that drive costs.

Cost Improvement Opportunities

Areas identified within a business process or operation where reductions in cost can be made without compromising the quality or performance of the product or service.