A product cost is deducted from revenue when
A) the finished goods are sold.
B) the expenditure is incurred.
C) the production process takes place.
D) the production process is completed.

Question

Quizplus · Accepted Answer

The cost of a product is deducted from revenue when the finished goods are sold, as this is when the cost is recognized as an expense in the income statement according to the matching principle in accounting.

A Product Cost Is Deducted from Revenue When