A Firm Using a Backflush Costing System Will Always Use

question 102

True/False

A firm using a backflush costing system will always use actual costs rather than standard costs.

---

Definitions:

Fixed Cost

Costs that do not change with the level of production or sales, such as rent or salaries.

Total Expense

The sum of all costs and expenses associated with the operations of a business.

Level Of Activity

A measure of the amount of output or work performed, often used in accounting to allocate fixed costs or in operational planning.