In a backflush-costing system, no record of work in process appears in the accounting records.

Question

Quizplus · Accepted Answer

Backflush-costing system is a system of determining the cost of a product by calculating backwards from the time of sale. This system assumes that all materials are used when the product is sold and no record is kept of the work in process. Therefore, there is no record of work in process in the accounting records in a backflush-costing system.

In a Backflush-Costing System, No Record of Work in Process