Actual costing uses actual indirect cost rates calculated annually at the end of the year.

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Actual costing is a costing method that uses actual indirect cost rates calculated annually at the end of the year. This method is different from normal costing which uses predetermined indirect cost rates based on estimates made at the beginning of the year. Actual costing provides a more accurate picture of the true cost of production as it accounts for the actual costs incurred during the year.

Actual Costing Uses Actual Indirect Cost Rates Calculated Annually at the End