Identify which one of the following statements regarding backflush costing is false.
A)Backflush costing has only one category of costs: conversion costs.
B)Backflush costing does not have a Work-in-Process Inventory account.
C)Costs are transferred out almost immediately after being initially recorded.
D)Some backflush-costing systems eliminate the Finished-Goods Inventory account and transfer costs directly to Cost of Goods Sold.

Question

Quizplus · Accepted Answer

Backflush costing typically has two categories of costs: direct materials and conversion costs.

Identify Which One of the Following Statements Regarding Backflush Costing