Which method of measuring costs associated with production is more widely used in practice?
A) actual costing
B) normal costing
C) ordinary costing
D) authentic costing

Question

Quizplus · Accepted Answer

Normal costing is more widely used in practice as it balances the accuracy of actual costing with the convenience and ease of use of budgeted costs. This method involves allocating indirect costs to products using predetermined overhead rates based on expected or budgeted costs. It provides a reliable estimate of product costs and facilitates decision-making regarding pricing, production volume, and profitability.

Which Method of Measuring Costs Associated with Production Is More