Backflush costing requires fewer allocations than traditional accounting methods.

Name: Backflush costing requires fewer allocations than traditional accounting methods.
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Backflush costing uses a simplified method of accounting, where costs are not allocated to work-in-progress or finished goods inventory until the final stage of production. This results in fewer allocations compared to traditional accounting methods, which allocate costs to inventory at each stage of production.

Backflush Costing Requires Fewer Allocations Than Traditional Accounting Methods