The Principal Difficulty with Normal Costing Is That

question 5

Multiple Choice

The principal difficulty with normal costing is that

• A)the unit cost information is not received on a timely basis.
• B)it can result in fluctuating per-unit overhead costs.
• C)estimated overhead and estimated activity are likely to differ from actual overhead and actual costs, resulting in underapplied or overapplied overhead.
• D)there is no difficulty associated with using normal costing.

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