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

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Definitions:

Procedural Memory

The type of long-term memory that is responsible for knowing how to do things, also known as motor skills.

Speed

The measure of how quickly an object moves from one location to another.

Temperament

An individual's innate personality traits, including their tendencies towards emotional reactivity and intensity, observable from a young age.

Heredity and Environment

The interplay between genetic inheritance and environmental factors in influencing an individual's development and traits.