A normal cost is incurred when:
A)Overtime is used more than originally planned.
B)Shipments are expedited.
C)Additional temporary workers are brought on site.
D)The aggressive baseline plan is adhered to.

Question

Quizplus · Accepted Answer

A normal cost is a cost that was planned or budgeted for in the original plan. Therefore, adhering to the aggressive baseline plan does not result in additional unexpected costs, making it a normal cost. The other options, such as overtime, expedited shipments, or additional temporary workers, are considered abnormal costs because they are unexpected and not originally planned for.

A Normal Cost Is Incurred When