Inventoriable costs are reported as an expense when incurred and expensed on the income statement when the product is sold.

Name: Inventoriable costs are reported as an expense when incurred and expensed on the income statement when the product is sold.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Inventoriable costs are not expensed on the income statement when incurred, but rather they are added to the cost of goods sold when the product is sold. It is only then that they are recognized as an expense on the income statement.

Inventoriable Costs Are Reported as an Expense When Incurred and Expensed