Inventoriable costs:
A)are particularly useful in management accounting.
B)are also referred to as nonmanufacturing costs.
C)include administrative and marketing costs.
D)are expensed in the accounting period in which the products are sold.

Question

Quizplus · Accepted Answer

Inventoriable costs are costs associated with the production of goods and are capitalized as inventory on the balance sheet until the goods are sold, at which point they are expensed on the income statement. Choices A, B, and C are incorrect because they do not accurately describe inventorial costs.

Inventoriable Costs