I am having trouble understanding backflush accounting is there a simple way to explain it to me?
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Backflush Accounting
15y ago#1Traditionally, (and in Paper F2), if production goes through several processes we do costings for each process and value the work-in-progress at each stage.
With backflush accounting, we assume they are keeping minimum inventories and do not account for each process separately (and value any work-in-progress simply at the cost of materials).
However, backflush is being taken out of the syllabus next year and it is therefore very unlikely indeed to be examined this time.
With backflush accounting, we assume they are keeping minimum inventories and do not account for each process separately (and value any work-in-progress simply at the cost of materials).
However, backflush is being taken out of the syllabus next year and it is therefore very unlikely indeed to be examined this time.
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