In a manufacturing company,________.
A)inventoriable costs only become an expense when the company sells the inventory
B)inventoriable costs become an expense as soon as the company finishes manufacturing the product
C)there is only one inventory account
D)merchandise inventory is reported on the balance sheet and income statement

Question

Quizplus · Accepted Answer

Inventoriable costs are the direct and indirect costs incurred to manufacture a product, and they only become an expense when the company sells the inventory. Until then, they are recorded as an asset in the inventory account on the balance sheet.

In a Manufacturing Company,________