Costs that are expended during the period in which the costs are incurred are called:
A) product costs.
B) inventoriable costs.
C) period costs.
D) indirect costs.

Question

Quizplus · Accepted Answer

Period costs are those costs that are expensed during the period in which the costs are incurred. Product costs, also known as inventoriable costs, are costs that are incurred to manufacture a product and are not expensed until the product is sold. Indirect costs are costs that cannot be directly traced to a specific product or service.

Costs That Are Expended During the Period in Which the Costs