Which of the following is/are not true regarding a manufacturing firm?
A)A manufacturing firm incurs costs as it produces goods by changing the physical form of raw materials.
B)The product costs for a manufacturing firm are the costs incurred in manufacturing goods for sale.
C)The costs to produce finished goods inventory for a manufacturing firm do not become expenses until the firm sells the product.
D)Prior to sale, the production costs of a a manufacturing firm represent the transformation of assets from one form into another.
E)Product costs for a manufacturing firm are treated as period costs during the period that the inventory is finished and ready for sale.

Question

Quizplus · Accepted Answer

Product costs for a manufacturing firm are not treated as period costs during the period that the inventory is finished and ready for sale. They are treated as inventoriable costs and only become expenses when the product is sold. All other statements are true regarding a manufacturing firm.

Which of the Following Is/are Not True Regarding a Manufacturing