A Costing System That Uses Actual Costs for Direct Materials

question 59

Multiple Choice

A costing system that uses actual costs for direct materials and labor and predetermined overhead rates to apply overhead is called a(n)

• A)actual costing system.
• B)standard costing system.
• C)normal costing system.
• D)activity-based costing system.

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Definitions:

Notice

A formal communication or indication to someone about a fact, requirement, or intention.

Equitable Remedy

Remedies granted by courts in situations where monetary damages are inadequate, including injunctions and specific performance, based on principles of fairness.

Breach of Contract

The act of not executing any part of a contract, be it written or oral, without an acceptable legal excuse.

Contract

A legally binding agreement between two or more parties, which outlines obligations and rights related to a particular arrangement or deal.