Which of the following is true about normal costing?
A) Actual overhead costs are not assigned directly to jobs in normal costing.
B) Normal costing does not solve the problems associated with actual costing.
C) The applied overhead is not calculated on a job specific basis in normal costing.
D) Normal costing uses only the indirect costs of direct materials.
E) All of these are correct.

Question

Quizplus · Accepted Answer

Normal costing assigns overhead to jobs based on a predetermined overhead rate, rather than actual overhead costs, which are not assigned directly to jobs.

Which of the Following Is True About Normal Costing