Question 1
An advantage of standard costing is that it gives visibility to the variances that arise in the production process.
◦ true
◦ false
Question 2
When using a normal costing system, direct materials and direct labor are recorded at
◦ standard cost and overhead is treated as a period cost.
◦ actual cost and overhead is applied to products using a predetermined overhead rate.
◦ actual cost and overhead is treated as a period cost.
◦ standard cost and overhead is applied to products using a predetermined overhead rate.