Costs directly associated with specific goods are:
A) product costs.
B) period costs.
C) prepaid costs.
D) past period costs.

Question

Quizplus · Accepted Answer

Product costs are directly associated with specific goods, such as direct materials, direct labor, and manufacturing overhead. These costs are incurred during the production process and are assigned to the cost of the specific goods. Period costs, on the other hand, are not directly associated with specific goods and are expensed in the period they are incurred. Prepaid costs refer to payments made in advance for goods or services, and past period costs refer to costs that have already been expensed and cannot be assigned to specific goods.

Costs Directly Associated with Specific Goods Are