Costs that are not classified as product costs are normally expensed in the period incurred.

Question

Quizplus · Accepted Answer

Product costs are costs that can be directly attributed to the production of a specific product. These costs are capitalized and incorporated into the cost of the product until the product is sold. Costs that are not directly related to the production of a specific product, such as selling and administrative expenses, are considered period costs and are expensed in the period incurred.

Costs That Are Not Classified as Product Costs Are Normally