Which of the following represents normal cost measurement?
A)Actual Direct Materials + Actual Direct Labor + Actual Overhead
B)Actual Direct Materials + Actual Direct Labor + Estimated Overhead
C)Estimated Direct Materials + Estimated Direct Labor + Actual Overhead
D)Actual Direct Materials + Estimated Direct Labor + Estimated Overhead

Question

Quizplus · Accepted Answer

Normal cost measurement typically involves the use of actual costs for direct materials and direct labor, combined with an estimated overhead cost. This approach balances the need for accurate cost tracking with the practical difficulties of measuring overhead costs in real-time.

Which of the Following Represents Normal Cost Measurement