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.
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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