Manufacturing costs assigned to inventory should appear on the income statement in the period in which:

Question

Quizplus · Accepted Answer

Manufacturing costs assigned to inventory appear on the income statement as cost of goods sold in the period in which the sale of goods is recorded. This aligns with the matching principle in accounting, which states that expenses should be recognized in the same period as the revenues they help to generate.

Manufacturing Costs Assigned to Inventory Should Appear on the Income