1. Which of the following statements is correct? a. Actual cost is composed of actual direct costs plus overhead applied using a predetermined overhead rate. b. Normal cost is composed of actual direct costs plus overhead applied based on the actual allocation base. c. Standard cost is composed of standard direct costs plus overhead applied based on the actual allocation base. d. There is no tradeoff between different costing methods. 2. For a service organization that uses a job costing system: a. generally less direct materials are used than manufacturing companies. b. overhead accounts carry the same names as those of manufacturing companies. c. cost of goods sold account is commonly used. d. the job costing procedure differs a lot from that used in manufacturing companies. 3. Projects are: a. complex jobs. b. easier to evaluate, relative to jobs. c. devoid of budgeting requirements. d. less time consuming, relative to jobs