The major difference between normal costing and standard costing is that normal costing only accounts for manufacturing costs in determining per unit cost while standard costing uses both manufacturing costs and general and administrative expenses.

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Normal costing and standard costing both primarily focus on manufacturing costs for determining per unit cost. The major difference lies in how they calculate these costs: normal costing uses actual direct materials and labor costs along with an estimated overhead rate, while standard costing uses predetermined costs for all elements of manufacturing.

The Major Difference Between Normal Costing and Standard Costing Is