Which of the Following Is Not True Regarding Normal Costing

question 38

Multiple Choice

Which of the following is not true regarding normal costing systems?

• A) A normal costing system predetermines overhead costs.
• B) A normal costing system assigns direct materials and direct labor to products using a predetermined rate.
• C) In a normal costing system overhead is assigned using a budgeted rate and actual activity.
• D) A normal costing system has less capacity for control than a standard costing system.
• E) All of these statements are true.

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Definitions:

Functional Units

Components or parts of a system that work together to perform a specific function or task.

Heredity

The genetic transmission of characteristics from parents to offspring, influencing traits such as eye color, height, and susceptibility to certain diseases.

Chromosomes

Within every cell, rod-shaped structures that carry the genes.

DNA

Deoxyribonucleic acid, a molecule that carries the genetic instructions used in the growth, development, functioning, and reproduction of all known living organisms and many viruses.