Which method of measuring costs associated with production is more widely used in practice?
A) normal costing
B) actual costing
C) both are used equally.
D) neither one is used.
E) cannot be determined.

Question

Quizplus · Accepted Answer

Normal costing is more widely used in practice due to its simplicity and ability to provide cost estimates for different stages of production. While actual costing may provide a more accurate measure of costs, it can be time-consuming and costly to track and allocate all actual costs to specific products or processes. Normal costing allows for a predetermined overhead rate to be used, simplifying the process of tracking and allocating costs.

Which Method of Measuring Costs Associated with Production Is More