Product costs, such as direct materials, are expensed during the period that they were incurred.

Name: Product costs, such as direct materials, are expensed during the period that they were incurred.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Product costs, including direct materials, are capitalized and go into inventory until the product is sold. They are not expensed until the product is sold and then appear on the income statement as cost of goods sold.

Product Costs, Such as Direct Materials, Are Expensed During the Period