The primary difference between normalized and actual costing methods lies in the determination of a job's:
A) direct material costs.
B) direct labor costs.
C) manufacturing overhead costs.
D) selling costs.
E) administrative costs.

Question

Quizplus · Accepted Answer

The primary difference between normalized and actual costing methods lies in how manufacturing overhead costs are allocated to jobs. Normalized costing uses predetermined overhead rates, while actual costing allocates overhead based on the actual overhead costs incurred.

The Primary Difference Between Normalized and Actual Costing Methods Lies