Normal costing is a costing system that traces actual direct costs to a cost object and allocates indirect costs based on the budgeted cost-driver rate.

Name: Normal costing is a costing system that traces actual direct costs to a cost object and allocates indirect costs based on the budgeted cost-driver rate.
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Question

Quizplus · Accepted Answer

Normal costing uses actual direct costs and applies overhead costs based on a predetermined rate, rather than using actual overhead costs, making the statement accurate.

Normal Costing Is a Costing System That Traces Actual Direct