Rene Manzor plans to use a recent inheritance to buy a small factory that produces travel bags.

Obj. 2 Rene has done a great deal of reading about managing a business and realizes that she must establish a costing system to accumulate the costs of producing the bags. In her reading, she learned about two methods of accumulating product costs, actual and normal. Rene has no experience in accounting and is confused about the difference between the two methods. How would you explain the difference in cost accumulation between actual costing and normal costing?