The Advantage of Using Normal Costing Instead of Actual Costing

question 87

Multiple Choice

The advantage of using normal costing instead of actual costing is ________.

• A) indirect costs are assigned at the end of the year when they are known
• B) the job cost is more accurate under normal costing
• C) indirect costs are assigned to a job on a timely basis
• D) normal costing provides a higher gross profit margin