Inventoriable costs are expensed on the income statement ________.
A) when direct materials for the product are purchased
B) after the products are manufactured
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 the costs that are added to the cost of inventory and are not recognized as an expense until the goods are sold. Therefore, these costs are expensed on the income statement when the products are sold. Choices A, B, and D are incorrect because they represent points in the production process where costs are incurred, but they are not recognized as expenses until the products are sold.

Inventoriable Costs Are Expensed on the Income Statement ________