The normal costing and standard costing methods are used in decisions such as ___________?
Correct answer: D. Both B and C
- A. investment decisions
- B. pricing decisions
- C. product mix decisions
- D. Both B and C
Explanation
Normal costing and standard costing provide cost information useful for setting prices and evaluating alternative product mixes. Investment decisions generally depend on long-term capital budgeting analysis rather than these costing methods alone.
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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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