Why should backflush cost calculation be implemented? What are its limitations?

The traditional cost accounting method or standard cost system adopts the synchronous method of cost accounting records and the synchronous tracking method of actual cost logistics. This kind of synchronous tracking often requires a lot of manpower and material resources, especially when it is necessary to track the clear composition of direct materials and direct labor. In order to simplify accounting and save manpower and material resources, the western accounting community has introduced the cost method of backflush.

Backflush cost calculation can't strictly abide by accepted accounting standards, because this method can't confirm the cost of WIP. The criticism of backward cost method also focuses on its lack of audit and tracking ability-it can't confirm the use of resources at every step of production.