BACKFLUSH ACCOUNTING AND FINANCIAL PERFORMANCE OF LISTED CONSUMER GOODS IN NIGERIA

Abstract

The study examines the impact of backflush accounting on the financial performance of consumer goods companies in Nigeria. The study used correlational research design where 13 firms were sampled using purposive sampling technique. The data were collected using secondary source from the annual financial reports of the firms for the period 2018-2022. Regression analysis was used to analysethe data collected from sampled firms, coefficient correlation and other diagnostic test were used with the aid of STATA. The study found that backflush accounting has a positive and insignificant impact on the financial performance of consumer goods companies. Hence, the study recommends that consumer goods firms in Nigeria should moderate their deployment of backflush as a management accounting practices in inventory control for organizational financial performance.