Product costs are also called
A) direct costs.
B) overhead costs.
C) inventoriable costs.
D) capitalizable costs.

Question

Quizplus · Accepted Answer

Product costs are also known as inventoriable costs because they are associated with the cost of producing or purchasing inventory that is intended for sale, and are recorded as assets on the balance sheet until the inventory is sold. Direct costs refer to costs directly attributable to producing a specific item or service, while overhead costs are indirect costs that cannot be easily assigned to a specific item or service. Capitalizable costs refer to costs that are eligible to be recorded as assets instead of expenses.

Product Costs Are Also Called