Multiple Choice Question (MCQ) | All Of The Following Are Reasons That Companies Prefer Normal Costing Except

MCQ | All Of The Following Are Reasons That Companies Prefer Normal Costing Except:

The correct answer is (b) "Normal costing tracks actual direct materials, actual direct labor costs, and actual manufacturing overhead costs", as both normal costing and actual costing tracks actual direct material, actual direct labor and actual manufacturing overhead costs. That is why companies prefer to use normal costing over actual costing except to this reason (b).