Which of the following statements about backflush costing is false?

Select one:

A. All cost of direct materials, direct labor, and manufacturing overhead are assigned to Cost of Goods Sold as they are incurred.

B. Firms that have implemented JIT rarely use the backflush costing approach.

C. Backflush costing derives its name from the fact that under this system, inventory costs are backed out of Cost of Goods Sold at the end of the accounting period.

D. If there are no inventories on hand at the end of the accounting period, no costs are transferred from Cost of Goods Sold to an inventory account.