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:

Substance-Use Disorder

A condition marked by the excessive use of substances, including alcohol and drugs, leading to clinically significant impairment or distress.

Alcohol-Use Disorder

A medical condition characterized by an inability to manage or stop alcohol consumption despite adverse effects.

Cirrhosis

A late stage of scarring (fibrosis) of the liver caused by many forms of liver diseases and conditions, such as hepatitis and chronic alcoholism.

Driving Under The Influence

Operating a vehicle after consuming alcohol or drugs to a level that impairs cognitive and motor skills.