As costs are used up in the production of revenues, they are said to expire.Expired costs are called expenses.

Name: As costs are used up in the production of revenues, they are said to expire.Expired costs are called expenses.
Brand: Quizplus
Rating: 4.8 (36 reviews)

Question

Quizplus · Accepted Answer

This is a correct statement in accounting. Costs incurred in the production of goods or services are recognized as expenses when they expire or are used up. These expenses are then subtracted from revenues to determine the net income or profit.

As Costs Are Used Up in the Production of Revenues