When do inventoriable costs become expenses?
A)When direct materials are purchased
B)When the manufacturing process begins
C)When the manufacturing process is completed
D)None of the above

Question

Quizplus · Accepted Answer

Inventoriable costs become expenses when the goods are sold, not at any of the stages mentioned in the options. This is because under the matching principle, costs are recognized as expenses in the period in which the related revenue is recognized.

When Do Inventoriable Costs Become Expenses