Which of the following statements is FALSE?
A)Product costs and inventoriable costs are interchangeable terms.
B)Inventoriable costs are important for GAAP.
C)Inventoriable costs are a special case of period costs.
D)"Product costs" refers to the particular costs of a product for the purpose at hand.

Question

Quizplus · Accepted Answer

Inventoriable costs are not a special case of period costs; they are costs that are capitalized as inventory on the balance sheet until the product is sold, at which point they become cost of goods sold. Period costs are expensed in the period they are incurred.

Which of the Following Statements Is FALSE