Which of the Following Is NOT Characteristic of Normal Costing

question 159

Multiple Choice

Which of the following is NOT characteristic of normal costing systems?

• A)A normal costing system predetermines overhead costs.
• B)A normal costing system assigns direct materials and direct labour to products using a predetermined rate.
• C)In a normal costing system, overhead is assigned using a budgeted rate and actual activity.
• D)A normal costing system has less capacity for control than a standard costing system.

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Definitions:

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An engineering discipline focusing on optimizing complex processes, systems, or organizations by eliminating waste and improving efficiency.

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