As inventoriable costs expire they become
A) selling expenses.
B) gross profit.
C) cost of goods sold.
D) sales revenue.

Question

Quizplus · Accepted Answer

In accounting, inventoriable costs are the expenses that are associated with the production or purchase of goods. These costs are initially recorded as inventory on the balance sheet, but as the goods are sold or used, they become expenses on the income statement through the cost of goods sold (COGS) account. Therefore, as inventoriable costs expire, they become part of the COGS, making option C the correct answer.

As Inventoriable Costs Expire They Become