Product costs are inventoried and treated as assets until:
A) the next accounting period.
B) related liabilities no longer exist.
C) the period in which the products they relate to are sold.
D)none of the above.

Question

Quizplus · Accepted Answer

Product costs are inventoried and treated as assets until the period in which the products they relate to are sold. This is when they are recognized as Cost of Goods Sold and expensed on the income statement. Therefore, choice C is the correct answer.

Product Costs Are Inventoried and Treated as Assets Until