QUESTION 3 What is the difference between a standard costing system and a normal costing system in terms of direct costs? On Standard costing uses standard prices or rates and actual quantities of inputs for actual outputs produced whereas normal costing uses actual direct material costs and budgeted direct labour costs. b. Standard costing uses standard prices or rates and standard quantities of inputs allowed for actual outputs produced whereas normal costing uses actual direct material costs and budgeted direct labour costs. OC Standard costing uses standard prices or rates and standard quantities of inputs allowed for actual outputs produced whereas normal costing uses actual direct material costs and actual direct labour costs. d. Standard costing uses actual prices or rates and standard quantities of inputs allowed for actual outputs produced whereas normal costing uses actual direct material costs and budgeted direct labour costs