Costs that are initially recorded as assets and expensed when sold are called:
A)fixed costs.
B)variable costs.
C)inventoriable costs.
D)period costs.

Question

Quizplus · Accepted Answer

Inventoriable costs are costs that are initially recorded as assets and then expensed when sold. This includes the cost of goods sold, which is the cost of the inventory that is sold during a period. Fixed costs refer to costs that do not vary with changes in output or sales, while variable costs change with the level of output or sales. Period costs are expenses that are not inventoried and are expensed during the period in which they are incurred.

Costs That Are Initially Recorded as Assets and Expensed When