Which of the Following Is False Regarding Normal Costing

question 13

Multiple Choice

Which of the following is false regarding normal costing?

• A)Normal costing assigns to products actual direct material and direct labor costs plus an amount representing "normal" manufacturing overhead.
• B)Under normal costing,a firm derives a rate for applying overhead to units produced before the production period begins.
• C)Under normal costing,a firm uses a predetermined overhead rate in applying overhead to each unit as the firm produces it throughout the year.
• D)Under normal costing,a firm uses the actual overhead costs incurred because this is the "normal" procedure in the United States.