Backflush costing provides reasonably accurate product costs if:
A) materials inventories are low and production cycle times are short
B) materials inventories are low and production cycles are long
C) materials inventories are high and production cycle times are long
D) materials inventories are high and production cycle times are short

Question

Quizplus · Accepted Answer

Backflush costing is effective when materials inventories are low and production cycle times are short because it simplifies the costing process by delaying the costing of materials until the production is complete, which works best in a just-in-time environment.

Backflush Costing Provides Reasonably Accurate Product Costs If