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The Principal Difficulty with Normal Costing Is That

Question 5

Multiple Choice

The principal difficulty with normal costing is that


A) the unit cost information is not received on a timely basis.
B) it can result in fluctuating per-unit overhead costs.
C) estimated overhead and estimated activity are likely to differ from actual overhead and actual costs, resulting in underapplied or overapplied overhead.
D) there is no difficulty associated with using normal costing.

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