What must occur for inventoriable costs to become expenses under the matching principle?
A)The product must be completed and ready to sell.
B)The product must be sold.
C)All of the costs associated with manufacturing a product must be incurred.
D)The product must have incurred labour.

Question

Quizplus · Accepted Answer

Under the matching principle, inventoriable costs become expenses when the corresponding products are sold. Until the products are sold, these costs remain on the balance sheet as inventory. Once the products are sold, the costs are moved from inventory to cost of goods sold on the income statement as an expense.

What Must Occur for Inventoriable Costs to Become Expenses Under