Using Normal Costing the Amount of Supervisory Salaries to Allocate

question 56

Multiple Choice

Using normal costing the amount of supervisory salaries to allocate is determined by calculating

• A)actual direct-cost rates times actual quantities of direct-cost inputs.
• B)actual indirect-cost rates times actual quantities of cost-allocation bases.
• C)actual direct-cost rates times budgeted quantities of input.
• D)budgeted indirect-cost rates times actual quantities of cost-allocation bases.
• E)budgeted indirect-cost rates times budgeted quantities of cost-allocation bases.

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Definitions:

Accounting Period

A specific duration of time used by businesses for financial reporting and accounting purposes, such as a month, quarter, or year.

Date

A specific point in time that may refer to a day, month, and year, often used in documentation and scheduling.

Insurance Account

An account used to track payments for insurance policies and the portion of the premium that has been used (expired) or is still in effect (unexpired).

Accounting Period

A specific period of time used for financial reporting, often a quarter or year, during which financial information is recorded and reported.