Inventoriable costs for external reporting purposes are also called:
A)product costs
B)period costs
C)variable costs
D)direct manufacturing costs

Question

Quizplus · Accepted Answer

Inventoriable costs refer to those costs that can be assigned to the cost of inventory, and are also known as product costs. These costs include direct materials, direct labor, and manufacturing overhead. Period costs, on the other hand, refer to non-inventoriable costs that are expensed in the period in which they are incurred, such as selling and administrative expenses. Variable costs refer to costs that vary with changes in the level of activity, while direct manufacturing costs are a subset of product costs, specifically referring to the costs associated with the direct manufacturing of a product.

Inventoriable Costs for External Reporting Purposes Are Also Called