Backflush Costing
Acknowledgment
I have taken efforts in this project. However, it would not have been possible without the kind support and help of many individuals and the organization. I would like to extend my sincere thanks to all of them.
I am highly indebted to the Institute of Business Management for its guidance and for providing necessary information regarding the project & also for their support in completing the project.
I would like to express my gratitude towards my parents and my teachers for their kind co-operation and encouragement which help me in completion of this project.
My thanks and appreciations also go to my colleague in helping with the project and other people who have willingly helped me out with their abilities.
Contents
Introduction
Back flush accounting is one of the accounting systems that support Just in Time system. Just in time is the inventory system that produced the required items at the right time and the right place. Accounting was delay the recording of transaction during process is known as back flush accounting. The system is the transaction was only recorded once the product was completed. Back flush accounting is the system that focuses on the output of organization and then work backwards when allocating costs between costs of goods sold and inventories, with no separate accounting for work in progress.
According to ACCA article, in back flush accounting costs are not associated with units until they are completed or sold. Back flush accounting is also called delayed costing, as costs are not allocated to production until after events have occurred. From view by other author, back flush accounting is a costing system that omits recording some of all of the journal entries relating to the cycle from purchase of direct materials to the sales of finished goods (Robert, 2011). According to Grahame Steven, Financial Management 2006, an approach
I have taken efforts in this project. However, it would not have been possible without the kind support and help of many individuals and the organization. I would like to extend my sincere thanks to all of them.
I am highly indebted to the Institute of Business Management for its guidance and for providing necessary information regarding the project & also for their support in completing the project.
I would like to express my gratitude towards my parents and my teachers for their kind co-operation and encouragement which help me in completion of this project.
My thanks and appreciations also go to my colleague in helping with the project and other people who have willingly helped me out with their abilities.
Contents
Introduction
Back flush accounting is one of the accounting systems that support Just in Time system. Just in time is the inventory system that produced the required items at the right time and the right place. Accounting was delay the recording of transaction during process is known as back flush accounting. The system is the transaction was only recorded once the product was completed. Back flush accounting is the system that focuses on the output of organization and then work backwards when allocating costs between costs of goods sold and inventories, with no separate accounting for work in progress.
According to ACCA article, in back flush accounting costs are not associated with units until they are completed or sold. Back flush accounting is also called delayed costing, as costs are not allocated to production until after events have occurred. From view by other author, back flush accounting is a costing system that omits recording some of all of the journal entries relating to the cycle from purchase of direct materials to the sales of finished goods (Robert, 2011). According to Grahame Steven, Financial Management 2006, an approach