Question

Which of the following is false regarding normal costing systems? Group of answer choices Unlike actual...

Which of the following is false regarding normal costing systems?

Group of answer choices

Unlike actual costing, a normal costing system assigns direct materials and labor costs to products using normal estimated costs.

In a normal costing system, overhead is assigned using a predetermined overhead rate multiplied by an actual activity.

A normal costing system estimates the total overhead cost to be occurred and the total activity to be performed during the period to set a predetermined overhead rate.

A normal costing system has less capacity for cost control and management than a standard costing system.

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Answer #1
Unlike actual costing, a normal costing system assigns direct materials and labor costs to products using normal estimated costs is false.
A normal costing system assigns actual direct materials and labor costs to products.
In a normal costing system, overhead is assigned using a predetermined overhead rate determined at the beginning of period based on estimated total overhead cost to be occurred and the total activity.
Option A should be selected.
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