Match each item with the correct statement below.
-An approach that assigns actual costs of direct materials, direct labor, and overhead to products
A)actual cost system
B)job-order costing system
C)normal cost system
D)process-costing system

Question

Quizplus · Accepted Answer

An actual cost system assigns actual costs of direct materials, direct labor, and overhead to products.

Answer: B
 Job-order costing system is used when products are made to order or in batches, and assigns costs to each individual job or batch.

Answer: C
 Normal cost system uses predetermined rates to allocate costs to products, based on estimated costs for direct materials, direct labor, and overhead.

Answer: D
 Process-costing system is used when products are made in a continuous process, and assigns costs to each step or process within the production system.

Match Each Item with the Correct Statement Below