Which of the following statements is FALSE?
A) Product costs are inventoriable costs.
B) Product costs are automatically deducted as expenses during the current period.
C) Product costs become expenses when the inventory is sold.
D) Product costs show up on the income statement in cost of goods sold.

Question

Quizplus · Accepted Answer

Product costs are not automatically deducted as expenses during the current period. Instead, they are initially recorded as assets on the balance sheet (inventories) and are gradually recognized as expenses (cost of goods sold) once the inventory is sold.

Which of the Following Statements Is FALSE