25-07-2012, 04:07 PM
Back Flush Costing
Back Flush Costing.ppt (Size: 194.5 KB / Downloads: 36)
Back flush costing
“cost accounting system which focuses on the output of an organization and then works back to attribute costs to stock and cost of sales”
“Costing system that omits recording some or all of the journal entries relating to the cycle from the purchase of direct material to the sale of finished goods.”
Back flush costing
Emphasis on when manufacture of a job is complete, and accounting entries must be made.
No need to keep WIP account, cost assigned to completed units.
Standard or budgeted costs basis for assigning costs to finish products.
Post Deduct Costing /Delayed Costing /Point Costing