What Is the Advantage of Using Normal Costing Instead of Actual

question 142

Multiple Choice

What is the advantage of using normal costing instead of actual costing?
Variant question

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

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Definitions:

Constructive

Serving a useful purpose; tending to build up, improve, or promote positive development.

Enhancing

Enhancing involves improving or augmenting the quality, value, or extent of something.

Transitional

Pertaining to or involving a phase of change from one state, condition, or stage to another, often implying a process of adaptation or evolution.

Winnicott

Refers to Donald Winnicott, a British psychoanalyst known for his work on developmental psychology and object relations theory.