Marshall Corporation incurred costs for materials and labor needed to manufacture its products. These costs are an example of:
A) Period costs.
B) Capitalized costs.
C) Balance sheet costs.
D) Product costs.
E) General costs.

Question

Quizplus · Accepted Answer

The costs incurred for materials and labor needed to manufacture products are referred to as product costs. Product costs are costs that are directly associated with the production of goods or services and are recorded as inventory until the products are sold.

Marshall Corporation Incurred Costs for Materials and Labor Needed to Manufacture