A costing system that omits recording some or all of the journal entries relating to the cycle from purchase of direct materials to the sale of finished goods is called ________.
A) dependent costing
B) synchronous costing
C) sequential costing
D) backflush costing

Question

Quizplus · Accepted Answer

The system described is known as backflush costing, as it omits recording intermediate journal entries and only "flushes" the costs through the system at the end of the production cycle or when certain trigger events occur. This type of costing system is often used in lean manufacturing or just-in-time environments where minimizing paperwork and administrative tasks is a priority.

A Costing System That Omits Recording Some or All of the Journal