An advantage of the actual-costing system is that at the end of the year,actual costs incurred equal the allocated costs in normal-costing systems.

Question

Quizplus · Accepted Answer

At the end of the year,costs allocated using normal costing will not,in general,equal actual costs incurred.If the differences are significant,adjustments will need to be made so that the cost of jobs and the costs in various inventory accounts are based on actual rather than normal costing.

An Advantage of the Actual-Costing System Is That at the End