Which of the following properly describes the accounting for advertising costs?
A) Advertising costs are product costs and are expensed as incurred.
B) Advertising costs are period costs and are expensed as incurred.
C) Advertising costs are product costs and are expensed when the manufactured product is sold.
D) Advertising costs are period costs and are expensed when the manufactured product is sold.

Question

Quizplus · Accepted Answer

Advertising costs are considered period costs since they are not directly related to the production of goods. They are typically expensed as incurred rather than included as an element in the cost of goods sold.

Which of the Following Properly Describes the Accounting for Advertising