Costs that are linked with revenues and are charged as expenses when the related revenue is recognized are known as product costs.

Question

Quizplus · Accepted Answer

Product costs are costs that are directly associated with the production or sale of goods. These costs can be linked to revenues and are recognized as expenses when the related revenue is recognized. Examples of product costs include direct materials, direct labor, and overhead costs.

Costs That Are Linked with Revenues and Are Charged as Expenses