For financial reporting to the IRS and other external users,manufacturing overhead costs are
A)deducted in the period that they are incurred.
B)inventoried until the related products are sold.
C)treated like period costs.
D)inventoried until the related products have been completeD.

Question

Quizplus · Accepted Answer

Manufacturing overhead costs are not directly attributable to a specific product, so they are not expensed as they are incurred. Instead, they are included in inventory as part of the cost of the product until it is sold. Therefore, option B is the correct choice.

For Financial Reporting to the IRS and Other External Users,manufacturing