backflush costing definition

backflush costing

Method of costing a product that works backwards: standard costs are allocated to finished products on the basis of the output of a repetitive manufacturing process. Used where inventory is kept at minimum (as in 'just in time' operations) this method obviates the need for detailed cost tracking required in absorption costing, and usually eliminates separate accounting for work-in-process. Also called backflush accounting.

backflush costing is in the Accounting & Auditing and Industries, Manufacturing, & Technology subjects.

backflush costing appears in the definition of the following term: backflush accounting

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