Product costs for financial statements are:
A) inventoriable costs for external reporting purposes
B) exchange costs incurred during transportation
C) only the costs incurred along the supply chain
D) opportunity costs incurred for the decisions forgone

Question

Quizplus · Accepted Answer

Product costs for financial statements are inventoriable costs for external reporting purposes. These are costs that are directly incurred in the production of a product and are necessary to bring the product to its present condition and location. They include direct materials, direct labor, and manufacturing overhead costs. These costs are added to the inventory account and are not expensed until the inventory is sold.

Product Costs for Financial Statements Are