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its not that i don’t understand backflush accounting its just how do you answer this question im stuck for words i guess
explain the implications of backflush accounting on performance management and the control of manufacturing process.
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in short, Its effect on performance management is that since we do not attribute costs and values to unfinished products, the work of the management accountant with regard to variance analyses is reduced.
Its effect on ctrl of manufacturing processes is that since no income is credited for an unfinished product even though the costs for them are inured within the department, the management will attempt to reduce the unfinished stock as much as possible and this takes us closer to a JIT environment.thanks for that. i was just having one of those days the more you look the less you take in. thanks again.
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hello
i take tuition from a tuition provider and my teacher there only taught us throughput accounting… when i asked him about backflush accounting he just smiled and shook his head… i guess he thinks its not that important but i am not sure.. its a new thing and i am quite uneasy about not learning it. i was looking for a video on that topic but couldnt find any. any sort of help will be appreciatedthanks
Here’s a quick video – there are also several articles on the ACCA Global website.
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thanks 🙂
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