Product costs
A) appear only on the balance sheet
B) appear only on the income statement
C) are expensed as costs are incurred for direct labor, direct material, and factory overhead
D) appear on both the income statement and balance sheet

Question

Quizplus · Accepted Answer

Product costs initially appear on the balance sheet as part of inventory. When the goods are sold, these costs are then transferred to the income statement as part of the cost of goods sold.

Product Costs