The Statement Concerning Actual and Normal Costing That Is True

question 20

Multiple Choice

The statement concerning actual and normal costing that is true is:

• A) Actual costing is carried out at the beginning of the accounting period
• B) Information from normal costing is used for pricing purposes
• C) Under actual costing direct labour is traced to a job and under normal costing it is allocated
• D) All of the statements are true

---

Definitions:

Credit

An accounting entry that increases liabilities and equity or decreases assets, reflecting a transaction such as the sale of goods on account.

Balance

The amount of money in a financial account, or the difference between the total debits and credits recorded in an account.

Reference Column

A column in financial documents or reports that is used to cross-reference or provide additional information related to a specific entry.

Journalizing

The process of recording financial transactions in a journal, detailing accounts affected, amounts, and dates.