Why might a consulting firm use noraml costing system rather than actual costing system?

A consulting firm might use a normal costing system instead of an actual costing system primarily for ease of Budgeting and Forecasting. Normal costing allows the firm to apply overhead costs based on a predetermined rate, which simplifies the allocation process and provides more timely financial information. This approach also helps in managing cash flow and maintaining consistent pricing strategies, as actual costs can fluctuate significantly based on project demands. Additionally, normal costing can facilitate performance evaluation by providing a stable basis for comparing projected versus actual results.