Which of the Following Statements About Backflush Costing Is FALSE

Multiple Choice

Which of the following statements about backflush costing is FALSE?

A) Backflush costing only has one category of costs that is conversion costs.
B) Backflush costing does not have a Work-in-Process Inventory account.
C) Some backflush costing systems eliminate the Finished Goods Inventory account and transfer costs directly to Cost of Goods Sold.
D) Backflush costing applies costs to products only when the production process is complete.