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 are recognized as an expense (typically as cost of goods sold) on the income statement in the period in which the related goods are sold. This aligns with the matching principle in accounting, which states that expenses should be matched with the revenues they help to generate.

Manufacturing Costs Assigned to Inventory Should Appear on the Income