Indirect costs incurred in a manufacturing environment that cannot be traced directly to a product are treated as:
A) period costs and expensed when incurred
B) product costs and expensed when the goods are sold
C) product costs and expenses when incurred
D) period costs and expensed when the goods are sold

Question

Quizplus · Accepted Answer

Indirect costs in manufacturing, such as overhead, are considered product costs and are expensed when the goods are sold, as they are part of the cost of manufacturing the product.

Indirect Costs Incurred in a Manufacturing Environment That Cannot Be