An actual quantity of input use is multiplied to actual prices, to calculate direct variable manufacturing cost in ________?
Correct answer: A. actual costing method
- A. actual costing method
- B. normal costing method
- C. direct costing method
- D. indirect costing method
Explanation
Actual costing uses actual input quantities multiplied by actual input prices for direct manufacturing costs. Normal costing instead uses actual quantities with budgeted rates for overhead.
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About Cost Accounting
Cost accounting measures and analyses the cost of producing goods or providing services for planning, control and pricing decisions. It covers direct and indirect costs, fixed and variable costs, job and process costing, break-even analysis, marginal costing, overhead allocation, and the difference between product cost and period cost.
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