Actual costing and normal costing are two different names for the same overhead allocation system.

Name: Actual costing and normal costing are two different names for the same overhead allocation system.
Brand: Quizplus
Rating: 4.8 (44 reviews)

Question

Quizplus · Accepted Answer

Actual costing and normal costing are two different methods of overhead allocation. Actual costing uses the actual overhead costs incurred during a period, while normal costing uses a predetermined overhead rate based on estimated costs and activity levels.

Actual Costing and Normal Costing Are Two Different Names for the Same