Period costs flow through three types of inventory accounts before becoming part of the cost of goods sold amount.

Name: Period costs flow through three types of inventory accounts before becoming part of the cost of goods sold amount.
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Question

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Period costs are not included in inventory accounts and are expensed immediately in the period they are incurred. Only product costs are included in inventory accounts before becoming a part of the cost of goods sold amount.

Period Costs Flow Through Three Types of Inventory Accounts Before