Normal costs are the average actual costs that have been incurred in the past and are used as the basis for future costing. They are used in normal cost accounting to compensate for fluctuations in actual costs that may arise due to unforeseen events such as machine breakdowns. This enables more stable and comparable cost accounting. The standard costs thus serve as a kind of realistic average value for costing. Special valuation requirements can be met using add-ons such as the Versino Financial Suite that enable advanced financial analyses.
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