Criticism of backflush accounting included all of the following EXCEPT
A)WIP exists but is not recorded.
B)GAAP is not followed for external reporting purposes.
C)there is an absence of audit trails.
D)the accounting system cannot pinpoint the uses of resources.
E)managers can keep track of operations by personal observation.

Question

Quizplus · Accepted Answer

The criticism listed in option E is not applicable to backflush accounting. In fact, one of the benefits of backflush accounting is that it allows managers to keep track of operations by observing the production process in real-time. The other options listed are valid criticisms of backflush accounting.

Criticism of Backflush Accounting Included All of the Following EXCEPT