When Using a Normal Costing System

question 27

Multiple Choice

When using a normal costing system

• A)Direct material and direct labor are recorded at standard cost and overhead is applied to products using a predetermined overhead rate.
• B)Direct material and direct labor are recorded at actual cost and overhead is treated as a period cost.
• C)Direct material and direct labor are recorded at actual cost and overhead is applied to products using a predetermined overhead rate.
• D)Direct material and direct labor are recorded at standard cost and overhead is treated as a period cost.

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Definitions:

Polar Nature

Refers to the characteristic of molecules having electrical or magnetic polarity, with distinct positive and negative ends.

Halite

Also known as rock salt, it is a mineral composed primarily of sodium chloride and forms through the evaporation of saline waters.

Water Molecule

A chemical entity consisting of one oxygen and two hydrogen atoms, connected by covalent bonds, essential for most forms of life.

Electronegativity

A measure of an atom's ability to attract and hold electrons within a chemical bond.