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:

Brave

The quality of being able to face and endure danger, difficulty, or pain without being overcome by fear; exhibiting courage.

Linking

The process of connecting or associating two or more elements together.

Redirecting

A technique used in behavior management to guide someone's behavior from inappropriate to desirable alternatives.

Angry Feelings

Emotional responses characterized by annoyance, frustration, or rage.