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

---

Definitions:

Aggressive

Behavior characterized by assertiveness, boldness, or a readiness to challenge or confront, sometimes leading to conflict.

Passive

A behavior or attitude characterized by submission or a lack of active response or resistance.

General Adaptation Syndrome

A three-stage response model to stress that includes alarm, resistance, and exhaustion phases.

Transactional Model

A communication theory that emphasizes the dynamic nature of interpersonal communication, where all parties involved simultaneously play the roles of both sender and receiver.