Backflush costing Assume that under - or over- allocate conversion costs are closed to cost of googds sold at the end of the month . Explain which system - process costing or backflush costing- would...

1 answer below »

Backflush costing Assume that under - or over- allocate conversion costs are closed to cost of googds sold at the end of the month . Explain which system - process costing or backflush costing- would result in higher net operatin income

Answered Same DayDec 20, 2021

Answer To: Backflush costing Assume that under - or over- allocate conversion costs are closed to cost of...

David answered on Dec 20 2021

128 Votes

In case of Process costing the operating profit would be higher as compared to back flush costing
the reason being, in back-flush costing there is usually no ending inventory or if there is any
ending inventory then the amount of such ending inventory is very low whereas in case of
process...

SOLUTION.PDF

Backflush costing Assume that under - or over- allocate conversion costs are closed to cost of googds sold at the end of the month . Explain which system - process costing or backflush costing- would...

Answer To: Backflush costing Assume that under - or over- allocate conversion costs are closed to cost of...

Answer To This Question Is Available To Download

Related Questions & Answers

Submit New Assignment