Product costs that are not attached to units that are sold are reported as:
A) selling expenses on the income statement.
B) costs of goods sold on the balance sheet.
C) administrative costs on the income statement.
D) inventory on the balance sheet.

Question

Quizplus · Accepted Answer

Product costs that are not attached to units that are sold are considered inventory and are reported on the balance sheet until they are sold, at which point they are transferred to the cost of goods sold on the income statement.

Product Costs That Are Not Attached to Units That Are