When are product costs expensed?
A)when the product is finished
B)when the product unit cost is calculated
C)when the product is sold
D)when the product begins production

Question

Quizplus · Accepted Answer

Product costs are expensed when the product is sold. Until then, they are recorded as inventory on the balance sheet. Once the product is sold, the cost of goods sold is recorded on the income statement, which includes the product costs.

When Are Product Costs Expensed