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 materials, and factory overhead
D)appear on both the income statement and balance sheet

Question

Quizplus · Accepted Answer

Product costs are initially recorded as inventory on the balance sheet. When the goods are sold, these costs are then expensed as cost of goods sold on the income statement. This means they appear on both the balance sheet and the income statement.

Product Costs