The Difference Between Actual Costing and Normal Costing Is ________

question 190

Multiple Choice

The difference between actual costing and normal costing is ________.

• A) normal costing uses actual quantities of direct-costs
• B) actual costing uses actual quantities of direct-costs
• C) normal costing uses budgeted indirect-costs
• D) actual costing uses actual quantities of cost-allocation bases

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Definitions:

WACC

Weighted Average Cost of Capital; a method for assessing a firm's capital costs by applying proportional weights to each kind of capital.

Credit Rating

An evaluation of the creditworthiness of an individual or corporation, often expressed as a grade or score, that reflects the likelihood of the entity defaulting on its debts.

Cost of Debt

The effective rate that a company pays on its total debt.