Which of the Following Statements About Backflush Costing Is FALSE

question 28

Multiple Choice

Which of the following statements about backflush costing is FALSE?

• A)Backflush costing only has one category of costs that is conversion costs.
• B)Backflush costing does not have a Work-in-Process Inventory account.
• C)Some backflush costing systems eliminate the Finished Goods Inventory account and transfer costs directly to Cost of Goods Sold.
• D)Backflush costing applies costs to products only when the production process is complete.

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