A product cost is
A) expensed in the period in which it is manufactured
B) shown with current liabilities on the balance sheet
C) shown with operating expenses on the income statement
D) expensed in the period the product is sold

Question

Quizplus · Accepted Answer

Product costs are expensed in the period the product is sold, as they are considered inventory until they are sold. This is known as cost of goods sold and is shown on the income statement. The other choices do not accurately reflect how product costs are accounted for.

A Product Cost Is