Which of the following statements is true with regard to product costs versus general, selling, and administrative costs?
A)Product costs associated with unsold units appear on the income statement as general expenses.
B)General, selling, and administrative costs appear on the balance sheet.
C)Product costs associated with units sold appear on the income statement as cost of goods sold.
D)None of these is true.

Question

Quizplus · Accepted Answer

Product costs associated with units sold are included in the cost of goods sold on the income statement, while general, selling, and administrative costs are typically reported separately as expenses on the income statement. Neither product costs nor general, selling, and administrative costs typically appear on the balance sheet.

Which of the Following Statements Is True with Regard to Product