Which method of measuring costs associated with production is more widely used in practice?

Question

Quizplus · Accepted Answer

Normal Costing is more widely used in practice as it involves the use of predetermined overhead rates based on estimates of cost drivers, which allows for easier budgeting and tracking of costs. Actual Costing, on the other hand, involves tracking the actual costs of production, which can be more time-consuming and difficult to manage. While both methods are used in practice, Normal Costing is generally preferred.

Which Method of Measuring Costs Associated with Production Is More