The use of normal costing with absorption costing
A)is used because it is easier than actual costing with absorption costing.
B)is used because it is more practical than actual costing.
C)is essentially the same as using actual costing; accountants have created the term for the sake of semantics.
D)means that only normal costs are used in assigning costs to production; any unexpected costs that occur are immediately expenses as period costs.

Question

Quizplus · Accepted Answer

Normal costing with absorption costing is used because it is more practical than actual costing. It involves using estimates of overhead costs rather than actual costs, which can be more efficient and cost-effective for companies.

The Use of Normal Costing with Absorption Costing