Normal costing is preferred by most companies because it assigns actual overhead costs to jobs.

Name: Normal costing is preferred by most companies because it assigns actual overhead costs to jobs.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Normal costing assigns predetermined overhead rates to jobs based on a budgeted amount of overhead costs, rather than actual overhead costs. This makes it easier for companies to estimate the cost of their products and services and allocate overhead costs to jobs.

Normal Costing Is Preferred by Most Companies Because It Assigns