A product cost is:
A) expensed in the period in which it is incurred
B) shown with current liabilities on the balance sheet
C) shown on the income statement with the operating expenses
D) expensed in the period the product is sold

Question

Quizplus · Accepted Answer

Product cost is expensed in the period the product is sold, usually as Cost of Goods Sold on the income statement. This includes all costs directly related to the production of the product, such as raw materials, labor, and overhead expenses. These costs are usually recognized when the product is sold, in order to match expenses with revenue and determine the profitability of the product.

A Product Cost Is