A product cost is deducted from revenue when
A)the finished goods are sold.
B)the expenditure is incurred.
C)the production process takes place.
D)the production process is completeD.

Question

Quizplus · Accepted Answer

Product cost is only deducted from revenue when the finished goods are sold. The cost of producing the goods is initially recorded as an inventory asset and only expensed when the goods are sold.

A Product Cost Is Deducted from Revenue When