All of the following costs should be charged against revenue in the period in which costs are incurred except for
A) manufacturing overhead costs for a product manufactured and sold in the same accounting period.
B) costs which will not benefit any future period.
C) costs from idle manufacturing capacity resulting from an unexpected plant shutdown.
D) costs of normal shrinkage and scrap incurred for the manufacture of a product in ending inventory.

Question

Quizplus · Accepted Answer

Costs of normal shrinkage and scrap incurred for the manufacture of a product in ending inventory should be included in the product's cost and charged against revenue when the product is sold, not in the period the costs are incurred.

All of the Following Costs Should Be Charged Against Revenue