An ABC Inventory System Refers to an "Activity-Based Costing" System

question 21

True/False

An ABC inventory system refers to an "activity-based costing" system.

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Definitions:

Credit Side

The right side of an accounting entry, indicating increases in liabilities, revenues, and equity, and decreases in assets and expenses.

Normal Balance

The side (debit or credit) on which increases to an account are recorded, depending on the type of account.

Liability Account

An accounting record that represents a company's legal debts or obligations that arise during the course of business operations.

Revenue Account

An account that tracks the income generated from a company's primary operations.