Backflush costing

Backflush costing is costing system that omits recording some of the journal entries relating to the stages from purchase of direct material to the sale of finished goods.

Definitions

According to Cost Accounting by Horngren, Datar, Rajan (14th edition),

Backflush costing. Costing system that omits recording some of the journal entries relating to the stages from purchase of direct material to the sale of finished goods.

According to Managerial Accounting by Braun, Tietz (5th edition),

Backflush costing. A simplified accounting system in which production costs are not assigned to the units until they are finished, or even sold, thereby saving the bookkeeping steps of moving the product through the various inventory accounts.