- *costs are allocated to products when a manufacturing process is finished, or when a sale is made. Backflush costing is normally associated with *just-in-time (JIT) manufacturing and delivery practices, and it offers the advantage of avoiding cumbersome and expensive cost tracking mechanisms. It is particularly suited to the typically low inventory levels of JIT environments.
Auditor's dictionary. 2014.
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Backflush Costing — A product costing system generally used in a just in time inventory environment. Backflush costing delays the costing process until the production of goods is completed. Costs are then “flushed” back at the end of the production run… … Investment dictionary
backflush costing — Fin a method of costing, associated with a JIT production system, which applies cost to the output of a process. Costs do not mirror the flow of products through the production process, but are attached to output produced (finished goods stock… … The ultimate business dictionary
Backflush accounting — is a product costing approach, used in a Just In Time (JIT) operating environment, in which costing is delayed until goods are finished. Standard costs are then flushed backward through the system to assign costs to products. The result is that… … Wikipedia
backflush accounting — A method of costing a product based on a management philosophy that includes having the minimum levels of stock available; in these circumstances, the valuation of stocks becomes less important, making the complex use of absorption costing… … Accounting dictionary
backflush accounting — A method of costing a product based on a management philosophy that includes having the minimum levels of inventory available; in these circumstances, the valuation of stocks becomes less important, making the complex use of absorption costing… … Big dictionary of business and management
cost accounting — The recording and analysis of *costs for management information purposes. Cost accounting often focuses on the costing of *units of inventory, for which there are several methodologies, including *absorption costing, *activity based costing, and… … Auditor's dictionary
just-in-time — JIT A manufacturing and operating philosophy that aims to supply products to customers in line with fluctuations in *demand. The main advantages of JIT operations include (i) typically low inventory levels, (ii) simplified *backflush costing… … Auditor's dictionary