Which of the following statements about normal costing is true?
A) Direct costs and indirect costs are traced using an actual rate.
B) Direct costs and indirect costs are traced using budgeted rates.
C) Direct costs are traced using a budgeted rate, and indirect costs are allocated using an actual rate.
D) Direct costs are traced using an actual rate, and indirect costs are allocated using a budgeted rate.

Question

Quizplus · Accepted Answer

Normal costing traces direct costs using actual rates and allocates indirect costs using a budgeted rate.

Which of the Following Statements About Normal Costing Is True