The costing system, which omits some of the journal entries in accounting system is known as ____________?

Correct answer: C. back flush costing

  • A. in-time costing
  • B. trigger costing
  • C. back flush costing
  • D. lead time costing

Explanation

Backflush costing postpones or omits many routine journal entries until the later stages of production or sale, using fewer accounting records than a conventional system. The other options are not recognised costing-system names.

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About Cost Accounting

Cost accounting measures and analyses the cost of producing goods or providing services for planning, control and pricing decisions. It covers direct and indirect costs, fixed and variable costs, job and process costing, break-even analysis, marginal costing, overhead allocation, and the difference between product cost and period cost.

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