Inventoriable costs are costs of a product that are ________.
A) costs of a product that are considered assets in a company's balance sheet when the costs are incurred and that are expensed as cost of goods sold only when the product is sold
B) considered liabilities in a company's balance sheet when the costs are incurred and that are expensed only when the product is sold
C) considered as assets in a company's income statement when the costs are capitalized and that are expensed as cost of goods sold only when the product is sold
D) considered as liabilities in a company's income statement when the costs are capitalized and that are expensed only when the product is sold

Question

Quizplus · Accepted Answer

Inventoriable costs are costs of a product that are considered assets in a company's balance sheet when the costs are incurred and that are expensed as cost of goods sold only when the product is sold. This is because they are directly related to the production of goods and are necessary to get products ready for sale. Once the product is sold, the costs associated with producing it are then moved from inventory to cost of goods sold on the income statement.

Inventoriable Costs Are Costs of a Product That Are ________