raditional normal and standard costing systems use sequential tracking, in which journal entries are

recorded in the same order as

actual purchases and progress in production, typically at

four

different trigger points in the process.

Part 2

Backflush costing

records all

of the journal entries relating to the cycle from purchase of direct materials to sale of finished goods, i.e., it has

a greater number of

trigger points at which journal entries are made. When journal entries for one or more stages in the cycle

were already prepared

,

the journal entries for a subsequent stage use normal or standard costs to work backward to "flush out" the costs in the cycle for which journal entries were

already

made.