Under normal costing:
A)Only direct variable manufacturing costs are inventoriable.
B)Only direct fixed manufacturing costs are inventoriable.
C)A predetermined overhead rate is used to allocate overheads.
D)Overhead costs are charged directly as incurred.

Question

Quizplus · Accepted Answer

Under normal costing, a predetermined overhead rate is used to allocate overhead costs to products. Direct variable and fixed manufacturing costs are also inventoried under normal costing, but they are not the only costs that are inventoried.

Under Normal Costing