Which of the following statements is correct concerning product costs?
A)Product costs are expensed in the period incurred.
B)Product costs are expensed in the period the related product is sold.
C)Product costs are shown with operating expenses on the income statement.
D)Product costs are shown with current liabilities on the balance sheet.

Question

Quizplus · Accepted Answer

Product costs are treated as inventory on the balance sheet until the related product is sold. At that point, the product costs are expensed as cost of goods sold on the income statement.

Which of the Following Statements Is Correct Concerning Product Costs