Normal costing is a costing system that traces direct costs to a cost object by using the actual direct-cost rates times the actual quantities of the direct-cost inputs.

Name: Normal costing is a costing system that traces direct costs to a cost object by using the actual direct-cost rates times the actual quantities of the direct-cost inputs.
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Question

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Normal costing uses actual direct-cost rates, not standard rates, to trace direct costs to cost objects.

Normal Costing Is a Costing System That Traces Direct Costs