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:

Hypothetical Proposition

A statement that suggests a possible situation or condition for further reasoning or speculation.

Standard Form

Refers to a conventional, widely accepted way of presenting or structuring a document, statement, or mathematical equation.

Proposition

A statement or assertion that expresses a judgement or opinion, which can be deemed true or false.

Converse

The statement that reverses the elements of another statement, often in the context of propositions or conditional statements.