Which of the Following Statements Is True of a Backflush

Multiple Choice

Which of the following statements is true of a backflush costing system?

A) All costs are tracked sequentially as products pass through each stage of production.
B) When inventories are minimal, as in JIT production systems, backflush costing complicates costing systems.
C) Usage of a backflush costing system does not satisfy the absorption costing rules of GAAP
D) Backflush costing increases the ability of the accounting system to pinpoint the uses of resources at each step in the production process.