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 is easier to implement and provides a more consistent and predictable measure of costs. Actual costing requires the collection and analysis of every cost incurred during production which can be time-consuming and difficult to track accurately. Normal costing provides a predetermined overhead rate that can be applied to the estimated amount of input, making it a more practical choice for many manufacturing firms.

Which Method of Measuring Costs Associated with Production Is More