The practice called "backflush costing" only charges cost to a unit of product when:
A) The unit leaves a just-in-time cell.
B) The unit is delivered to the customer.
C) The unit enters the finished goods inventory.
D) Raw material is added to the unit.

Question

Quizplus · Accepted Answer

Backflush costing charges cost to a unit of product when it leaves a just-in-time (JIT) cell, aligning with JIT manufacturing principles where costs are allocated at the end of the production process rather than at each stage.

The Practice Called "Backflush Costing" Only Charges Cost to a Unit