The true statement is:
A) Period costs are expensed in the period the product is sold
B) Period costs are initially inventoried, then expensed
C) Product costs are expensed in the period the product is sold
D) Product costs are expensed as the product is produced

Question

Quizplus · Accepted Answer

Product costs are associated with the goods produced and are expensed when the product is sold, aligning with the matching principle in accounting. This principle states that expenses should be recognized in the period in which the related revenues are earned.

The True Statement Is