Product costs are expensed as cost of goods sold:
A) when production is complete.
B) at the start of production.
C) when the related products are sold.
D) when the related revenue is collected.

Question

Quizplus · Accepted Answer

According to the matching principle, product costs should be recognized as an expense when the related products are sold. This means that the cost of goods sold account is used to recognize the expense of producing and selling the product when it is sold to customers.

Product Costs Are Expensed as Cost of Goods Sold