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.

Question

Quizplus · Accepted Answer

Normal costing systems assign direct materials and direct labor to products based on their actual costs, not using a predetermined rate. Predetermined rates are typically used for assigning overhead costs, not direct materials and direct labor.

Which of the Following Is NOT Characteristic of Normal Costing