____ are expensed in the period in which they are incurred.
A)Direct materials
B)Product costs
C)Factory overhead
D)Nonproduction costs

Question

Quizplus · Accepted Answer

Nonproduction costs, such as selling and administrative expenses, are expensed in the period in which they are incurred. Direct materials and factory overhead are components of product costs, which are added to inventory and expensed when the product is sold.

____ Are Expensed in the Period in Which They Are