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 are true.

Question

Quizplus · Accepted Answer

Product costs associated with units sold appear on the income statement as cost of goods sold. General, selling, and administrative costs appear on the income statement as operating expenses. Product costs associated with unsold units are included in inventory on the balance sheet.

Which of the Following Statements Is True with Regard to Product