Backflush costing is a standard costing system that starts with output completed and then assigns manufacturing costs to units sold and to inventories.

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Backflush costing is a simplified accounting method that works backwards from the point of sale or completion of goods to allocate costs to products, primarily used in just-in-time (JIT) manufacturing environments. It assigns costs to products after they are completed, focusing on the outputs rather than tracking each step of the production process.

Backflush Costing Is a Standard Costing System That Starts with Output