Normal Costing

Normal costing is such type costing that is used to value manufactured products with the genuine materials costs, the genuine direct labor costs, and manufacturing operating cost depends upon already determined manufacturing operating cost rate. Normal costing is used to derive the cost of the product. Normal Costing includes the following components that are Actual cost of material, labor and standard rate of Factory Over Head.

System Normal Costing Definition

Normal Costing System Definition: Normal Costing system is a costing system in which overhead costs are applied to jobs by multiplying a predetermined overhead rate by the actual amount of the allocation base incurred by the job.   Recommended Books ! Or Download E