The First Step in Marketing Cost Analysis Is to Reclassify

question 138

True/False

The first step in marketing cost analysis is to reclassify all the dollar cost entries in the natural accounts into functional cost accounts.

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Definitions:

Book Balance

The balance of an account according to the accounting records, not necessarily reflecting the available cash or cleared funds.

Bank Balance

The total amount of funds available in a bank account at a given moment, including all deposits and subtracting any withdrawals.

Outstanding Checks

Checks that have been written and recorded in the accounting books but have not yet been cashed or cleared by the bank.

Month-end Bank Statement

A document provided by a bank summarizing the account’s activity and balances over the last month, used for reconciling the bank account.