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Commerce · Q356

Costing

Graduate and Post Graduate · Commerce · question 356

Q356

Costing system, which omits some of journal entries in accounting system is known as

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

Answer: Option C

Solution

Answer: Option C
Solution:
Costing system, which omits some of journal entries in accounting system is known as back flush costing. Backflush costing is a product costing system generally used in a just-in-time (JIT) inventory environment.