Which of the following is not a drawback of actual costing?
A. Costs avoid the estimation associated with predetermined overhead rates.
B. Costs are subject to cyclicality.
C. Actual overhead costs may only be available after a production period has passed.
D. Costs may not be evenly spread throughout the year due to large payments for overhead costs.
E. All of these are drawbacks of actual costing.
Answer: A
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