In some variations of normal costing, organizations use budgeted rates to assign direct costs as well as indirect costs to jobs.

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Quizplus · Accepted Answer

This statement is true. In normal costing, budgeted rates are often used to assign indirect costs to jobs. Direct costs are typically assigned using actual costing methods, which use actual costs rather than budgeted or estimated costs. However, some organizations may choose to use budgeted rates for both direct and indirect costs in order to simplify the costing process and make it easier to estimate the total cost of a job.

In Some Variations of Normal Costing, Organizations Use Budgeted Rates