Which of the Following Statements Is Correct

question 33

Multiple Choice

Which of the following statements is correct?

• A)Both actual costing and normal costing systems trace direct costs to a cost object by using actual cost data.
• B)An actual costing system is timelier than a normal costing system.
• C)An actual costing system is less accurate than a normal costing system.
• D)Both actual costing and normal costing systems will result in the same total cost of production per unit at all points in the production process.

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Definitions:

Obtainable Goal

A target or objective that is realistically achievable within a given timeframe or with available resources.

Organizational Structure

The system that outlines how certain activities are directed to achieve the goals of an organization, including rules, roles, and responsibilities.

Excess Plant Capacity

A situation where a company's production facilities have more production capabilities than currently needed for its level of production.

Stockholders' Approval

The formal consent given by shareholders, often required for significant company actions like mergers, acquisitions, or changes in corporate structure.