Consider Two Costing Systems,normal Costing and Actual Costing

question 22

Essay

Consider two costing systems,normal costing and actual costing.
A. Which costing system do most firms use to assign costs to units of product or service?
What does this costing system include?
B. What is the other costing system? What does this costing system include?

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Definitions:

Monopolistic Competitor

A firm in a market structure where many companies sell products that are similar but not identical.

Monopsony Labor Market

is a market structure where a single buyer (employer) substantially controls the market as the major purchaser of labor, influencing wages and employment conditions.

Purely Competitive

A market structure characterized by a large number of small firms producing identical products, with no single firm able to influence the market price.

Marginal Revenue Product

Marginal Revenue Product measures the additional revenue generated from employing an extra unit of a resource.