Question

Which of the following statements concerning product costs is​ correct? A. Period costs are only expensed when a related unit of product is sold. B. Product costs are initially inventoried on a​ company’s Balance Sheet. C. All links in the value chain can be considered product costs. D. Product costs are sometimes referred to as​ SG&A expenses.

Answer 1

Answer:

B. Product costs are initially inventoried on a​ company’s Balance Sheet.

Explanation:

The costs which are invested to manufacture any product is referred to as product cost. The total costs which are incurred in the production of a finished good are known as product cost. The cost incurred on labor, raw goods, supply production, and factory overhead is the product cost. They are recorded in the financial statement of the manufacturing company.