Costs That Are Capitalized as Inventory When They Are Incurred

question 160

Multiple Choice

Costs that are capitalized as inventory when they are incurred are called:

• A)Period costs.
• B)Product costs.
• C)General costs.
• D)Administrative costs.
• E)Fixed costs.

---

Definitions:

Cerebral Arterial Circle

Also known as the Circle of Willis, it is a ring-like arterial structure located at the base of the brain that ensures blood circulation even if part of it is blocked or narrowed.

Posterior Communicating Artery

A blood vessel that connects the internal carotid artery and the posterior cerebral artery at the base of the brain.

Internal Carotid Artery

A major artery that supplies blood to the brain, eyes, and other parts of the head.

Pulmonary Artery

The artery carrying blood from the right ventricle of the heart to the lungs for oxygenation.