In a normal cost system, which of the following is used?
A) yes no yes
B) yes yes yes
C) yes yes no
D) no yes no

Question

In a normal cost system, which of the following is used? 
A) yes no yes 
B) yes yes yes 
C) yes yes no 
D) no yes no

Quizplus · Accepted Answer

In a normal cost system, actual costs are recorded for direct materials and direct labor, but overhead costs are applied based on predetermined rates, rather than actual costs. Therefore, the answer would be yes for direct materials and direct labor (as actual costs are used), but no for overhead costs (as predetermined rates are used).

In a Normal Cost System, Which of the Following Is