Actual Costing Method
In actual costing method, product cost is calculated at year-end by using the cost data that incurred during the year. In order to calculate the product cost, it is necessary that the production is completed and all related expenditures have incurred. Direct costs (direct material and direct labor) incur in parallel to the production process and they are traced to products, so they can be measured on time. However, for determining the actual manufacturing overhead cost per unit, an allocation is required, and this is possible only at the end of the year, when all
overhead for the year can be measured.

Operating budgets reflect the company’s short-term plans related to the implementation of strategic projects, and result in the preparation of budgeted income statement. The scope and the number of operating budgets may change from company to company depending on the company’s characteristics, such as company size or the types of existing operations. 

It should be Full Costing Method.

establishing non-objectives is not one of them 

In full costing method, expenditures for all manufacturing related factors are included in the product cost.

We can list the essential factors that have a role in making a profit as follows:

• Price of the product (service) per unit
• Sales amount of the product (service)
• Variable cost of the product (service) per unit
• Total amount of fixed cost of the product (service

The rate refers to the amount of cost allocated to each unit of the allocation base.

Unit amount of fixed cost of product is not one of them 

Indirect Costing Method is  not one of them 

Flexible budget is the budget that adjusts the revenues and expenses according to actual sales volume.

ıt should be decision

Depending on the product type, managers can choose among different costing systems for assigning costs to products. These systems, in fact, are separately applicable, but with the help of technological improvements, it became easier to collect and process cost data; which makes it possible to combine these methods and reach a more accurate costing system by dedicating the same amount of resources in terms of cost and effort. Fundamentally, there are two main costing systems that differ in costing style:
• Job Costing
• Process Costing

The difference between the actual results and budgeted amounts is called “variance”.

Usually, engineering departments or industrial designers determine the expected usage of direct materials, by analyzing the input-output relationship and update the bill of materials records stored in the computer system of the company. For example, the bill of materials records of MGD Corp. shows that each leather shoe requires 0.70 m of leather. Bill of materials is a kind of recipe for production. It identifies the use of direct materials in production, including the sequence and required amount of materials to produce each finished unit.

Reciprocal Method This method is also known as algebraic method. The reciprocal allocation method allocates costs by explicitly including the mutual services provided among all support departments. Theoretically, the direct method and the step-down method are less accurate when support departments provide services to one another reciprocally.

The correct answer is C.