Accounting Dictionary - Letter A

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
Actual costing
is a product costing system when an entity measures actual costs of direct materials, direct labor, and factory overhead. An actual costing system is rarely used because it does not provide accurate information on a timely basis: many costs can be measured only at the end of the production, and some actual costs fluctuate a lot leading to potential errors in price recording.
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