Which of the Following Statements About Normal Costing Is True

question 42

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:

Across Cultures Competency

The capacity to comprehend, converse, and engage successfully with individuals from different cultural backgrounds.

KSAs

Stands for Knowledge, Skills, and Abilities; key components that individuals need to perform a job effectively.

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The process of inspiring and encouraging employees to perform their best through various strategies, rewards, and recognitions.

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