Generally accepted accounting principles (GAAP)mandate that manufacturing overhead must be treated as an inventoriable product cost for financial reporting purposes.

Question

Quizplus · Accepted Answer

GAAP requires that all costs associated with the production of inventory, including manufacturing overhead, must be included as part of the cost of goods sold and reported on the balance sheet as an asset until the goods are sold. This ensures that inventory is accurately reflected on the company's financial statements.

Generally Accepted Accounting Principles (GAAP)mandate That Manufacturing Overhead Must Be