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 the products. Both direct variable and fixed manufacturing costs are inventoriable under this method. Direct costs are charged directly to the products, while overhead costs are allocated based on the predetermined overhead rate.

Under Normal Costing