Sarah is opening a nail salon and is setting up their accounting system. They have decided to use normal costing. What may have been the deciding factor in choosing normal over actual costing?

1) With time being an issue, she could use estimated MOH to set unit costs prior to opening.

2) She chose normal for now and will change later if it does not work for her business.

3) Normal costing is more widely used and actual cost is not as common.

4) She chose based on the assumption her estimates were accurate and would not need to wait for actual costs.