Identify Which One of the Following Statements Regarding Backflush Costing

Identify which one of the following statements regarding backflush costing is false.

A) Backflush costing does not have a Work- in- Process Inventory account.
B) Backflush costing has only one category of costs: conversion costs.
C) Costs are transferred out almost immediately after being initially recorded.
D) Some backflush- costing systems eliminate the Finished- Goods Inventory account and transfer costs directly to Cost of Goods Sold.

Correct Answer:

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