Using normal costing requires that

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Quizplus · Accepted Answer

Normal costing requires that actual overhead costs be accumulated and then assigned to jobs using predetermined rates based on a cost driver. This means that actual overhead costs are not assigned directly to jobs, as it would make the cost of each job unpredictable and prone to fluctuation. Instead, overhead costs are first allocated to cost pools and then assigned to jobs based on a cost driver such as direct labor hours or machine hours.

Using Normal Costing Requires That