All of the following costs should be charged to expense in the period in which they are incurred EXCEPT for
A)manufacturing overhead costs for a product manufactured and sold in the same accounting period.
B)costs which will not benefit any future period.
C)costs from idle manufacturing capacity resulting from an unexpected plant shutdown.
D)costs of normal shrinkage and scrap incurred for the manufacture of a product in ending inventory.

Question

Quizplus · Accepted Answer

Costs of normal shrinkage and scrap incurred for the manufacture of a product in ending inventory should be capitalized as part of the inventory cost and expensed when the inventory is sold.

All of the Following Costs Should Be Charged to Expense