Product costs are carried in inventory until the goods are finished, then they are expensed.

Name: Product costs are carried in inventory until the goods are finished, then they are expensed.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Product costs are initially carried in inventory but are expensed gradually as the goods are sold. The cost of goods sold (COGS) is the expense recognized when goods are sold, which includes the cost of the items sold as well as a portion of the inventory costs associated with those items.

Product Costs Are Carried in Inventory Until the Goods Are