Backflush Costing Aims at Reducing Waste in the

question 142

Multiple Choice

Backflush costing aims at reducing waste in the

• A)accounting system.
• B)cost of goods sold.
• C)storage of raw materials.
• D)production process.

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Definitions:

Factory Overhead Account

An account that accumulates all indirect costs associated with manufacturing operations, not directly tied to specific units.

Factory Overhead

All indirect costs associated with manufacturing, including utilities, maintenance, and management salaries, not directly tied to the production of goods.

Applied Overhead

The portion of overhead allocated to specific jobs or production units based on a predetermined rate, contributing to the total cost of production.

Actual Overhead

The real costs associated with manufacturing overhead that a company incurs, as opposed to budgeted or estimated overhead costs.