Backflush costing has only two categories of costs that include materials and conversion costs.

Name: Backflush costing has only two categories of costs that include materials and conversion costs.
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Backflush costing is a simplified costing method that only considers two categories of costs - materials and conversion costs. Materials costs include the raw materials and components used to produce the product, while conversion costs include direct labor and manufacturing overhead.

Backflush Costing Has Only Two Categories of Costs That Include