Companies that have fast manufacturing lead times usually find that a version of backflush costing will report cost numbers similar to what a sequential costing approach would report.

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Backflush costing is a method of costing that involves waiting until the end of a production period to calculate costs based on the number of products produced and the materials used. This approach is often used by companies that have fast manufacturing lead times because it allows them to quickly produce and sell products without worrying about tracking costs in real-time. While backflush costing can result in slightly different cost numbers than sequential costing, companies with fast lead times often find that the difference is negligible, and that backflush costing is a more efficient approach for their operations.

Companies That Have Fast Manufacturing Lead Times Usually Find That