Backflush Accounting

May 29th, 2015
Studypool Tutor
Murray State University
Course: general
Price: $10 USD

Tutor description

Backflush accounting is a cost accounting system which focuses on the output of an organization and then works backwards to attributed costs to stock and cost of sales. This system records the transaction only at the termination of the production and sales cycle

Word Count: 1962
Showing Page: 1/7
Backflush accounting Definition Backflush accounting is a cost accounting system which focuses on the output of an organization and then works backwards to attributed costs to stock and cost of sales. This system records the transaction only at the termination of the production and sales cycle. The emphasis is to measure cost at the beginning and at the end with greater emphasis on the end or outputs. Since back flushing is usually employed in parallel with JIT, there is no work-in-progress to considered nor, does work in-progress materially fluctuate. What is essential, however, is an accurate bill of materials, good measure of yields, generally effective production control and accurate engineering change notice when yields do change. The principle of a just-in-time system is that production is pulled by customer demand and this in turn pulls the purchasing procedures. Thus, theoretically there are zero stocks of raw materials. Work-in-progress and finished goods. For such a situation to exist there needs to be an excellent system of production planning and communication with materials suppliers. The philosophy of traditional cost accounting methods Traditional cost accounting methods are based upon the principle that value is obtained by the creation of the assets known as stock. As a consequence this value must be measured and cost accumulation systems are used for this purpose. In modern JIT based production, stock does not exist and therefore

Review from student

Studypool Student
" Thanks for the help. "
Ask your homework questions. Receive quality answers!

Type your question here (or upload an image)

1824 tutors are online

Brown University





1271 Tutors

California Institute of Technology




2131 Tutors

Carnegie Mellon University




982 Tutors

Columbia University





1256 Tutors

Dartmouth University





2113 Tutors

Emory University





2279 Tutors

Harvard University





599 Tutors

Massachusetts Institute of Technology



2319 Tutors

New York University





1645 Tutors

Notre Dam University





1911 Tutors

Oklahoma University





2122 Tutors

Pennsylvania State University





932 Tutors

Princeton University





1211 Tutors

Stanford University





983 Tutors

University of California





1282 Tutors

Oxford University





123 Tutors

Yale University





2325 Tutors