Which of the following is not a drawback of actual costing?
A)Costs are subject to cyclicality.
B)Costs avoid the estimation associated with predetermined overhead rates.
C)Costs may not be evenly spread throughout the year due to large payments for overhead
D)Actual overhead costs may only be available after a production period has passed.
E)All of these are drawbacks of actual costing.

Question

Quizplus · Accepted Answer

Option B is not a drawback of actual costing. It is an advantage because actual costing avoids the estimation associated with predetermined overhead rates. The other options are all drawbacks of actual costing.

Which of the Following Is Not a Drawback of Actual