Which of the following statements regarding backflush costing is false?

Question

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Backflush costing is a simplified costing method that relies on the number of components used to produce a product rather than tracking actual costs. While it is true that backflush costing can be simpler and less expensive than traditional product costing (A), it does not provide more detailed information than a job order costing system (B). In fact, it is less detailed because it does not track actual costs. When using backflush costing, a cost-benefit decision does need to be made (C), and it is typically used in environments where production-related inventories are kept low (D).

Which of the Following Statements Regarding Backflush Costing Is False