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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