Since costs that are inventoried are not expensed until the units associated with them are sold, a manager can produce more units than are expected to be sold in a period without reducing a firm's net income.

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This statement is true. When costs are inventoried, they are not immediately expensed. This means that a manager can produce more units than are expected to be sold in a period without reducing a firm's net income because the costs associated with those units will not be expensed until they are sold. However, this can have an impact on cash flow and inventory management.

Since Costs That Are Inventoried Are Not Expensed Until the Units