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

Question

Quizplus · Accepted Answer

Product costs and inventoriable costs are not interchangeable terms. Product costs refer to all costs incurred in the production of a product, including direct materials, direct labor, and manufacturing overhead. Inventoriable costs, on the other hand, only include the costs of direct materials, direct labor, and manufacturing overhead that are associated with the products that are still in inventory and have not yet been sold.

Which of the Following Statements Is FALSE