NO-INVENTORY STANDARD COSTING FOR JIT MANUFACTURERS: MAXIMIZING BACKFLUSH COSTING

摘要

Backflush costing has been described as a "modern, new, and radical" form of cost management and as "the absence of a system." In Cost Accounting A Managerial Emphasis, Horngren and Foster describe it this way:rnBackflush costing is a costing system that omits recording some or all of the journal entries relating to the cycle from purchase of direct materials to the sale of finished goods. When journal entries for one or more stages in the cycle are omitted, the journal entries for a subsequent stage use the normal or standard costs to work backward to "flush out" the costs in the cycle for which journal entries were not made.