Which of the following expenses are reported on the income statement as expenses when they are incurred?

Question

Quizplus · Accepted Answer

Period costs (such as selling, general and administrative expenses) are reported on the income statement as expenses when they are incurred, while product costs (such as direct materials, direct labor, and factory overhead) are recorded as expenses when the related products are sold. Indirect material and direct material are both types of product costs.

Which of the Following Expenses Are Reported on the Income