When a Normal Costing System Is Used,clients Using Proportionately More

question 29

Multiple Choice

When a normal costing system is used,clients using proportionately more full-time employees than trainees will ________.

• A) be overbilled for actual resources used
• B) be underbilled for actual resources used
• C) be billed accurately for actual resources used
• D) result in an underallocation of direct costs

---

Definitions:

Work Sheet

An informal document used by accountants to prepare adjusting entries and a trial balance in the process of preparing financial statements.

Unadjusted Trial Balance

A list of all the balances in a company’s accounts before any adjusting entries are made for reporting purposes.

Management Report

A document that provides managers with information necessary to make decisions, including financial and operational data.

Accounting Period

A specific time span for which financial statements are prepared, commonly a quarter or a year.