Which of the Following Statements About Normal Costing Is TRUE

question 98

Multiple Choice

Which of the following statements about normal costing is TRUE?

• A)Direct costs and indirect costs are allocated using an actual rate.
• B)Direct costs and indirect costs are traced using budgeted rates.
• C)Direct costs are traced using a budgeted rate, and indirect costs are allocated using an actual rate.
• D)Direct costs are traced using an actual rate, and indirect costs are allocated using a budgeted rate.
• E)Direct costs are traced by using the actual direct-cost rate times the budgeted quantity of the direct costs input.

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Definitions:

Sample Data

Sample data refers to a subset of a population selected for measurement, observation, or questioning, to provide statistical analysis.

Matched Pairs

A study design where each subject is paired with a similar subject, or the same subject is tested under different conditions, to reduce variability in the data.

Sample Values

Specific measurements or observations collected from a portion of a larger group or population for analysis.

Matched Pairs T-test

A statistical procedure that compares the average values of two connected groups to ascertain if the difference between them is significant from a statistical standpoint.