Inventoriable costs are expensed on the income statement ________.
A) when direct materials for the product are purchased
B) when the direct materials are used in production.
C) when the products are sold
D) when the goods move from work-in process to finished goods account

Question

Quizplus · Accepted Answer

Inventoriable costs are expensed on the income statement when the products are sold. This is in accordance with the matching principle, which states that expenses should be recognized in the period in which the related revenues are earned.

Inventoriable Costs Are Expensed on the Income Statement ________