Final answer:
Actual costing uses actual quantities and prices of inputs, while normal costing combines actual quantities of direct materials and labor with budgeted rates for indirect costs.
Step-by-step explanation:
The difference between actual costing and normal costing is that actual costing uses the actual quantities and prices of inputs to determine costs, whereas normal costing uses the actual quantities of direct materials and direct labor, but applies budgeted rates for indirect costs or overhead. In other words, B) actual costing uses actual quantities of direct-costs and C) normal costing uses budgeted indirect-costs. These methods affect how costs such as fixed cost, marginal cost, average total cost, and average variable cost are calculated and reported. Each statistic offers its own insights for the firm, making it important for businesses to choose the method that best suits their cost reporting needs.