An EXCEPTION to the General Rule That Costs Should Be

question 370

Multiple Choice

An EXCEPTION to the general rule that costs should be charged to expense in the period incurred is

• A)factory overhead costs incurred on a product manufactured but not sold during the current
• Accounting period.
• B)interest costs for financing of inventories that are routinely manufactured in large
• Quantities on a repetitive basis.
• C)general and administrative fixed costs incurred in connection with the purchase of
• D)sales commission and salary costs incurred in connection with the sale of inventory.

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Definitions:

Fluid Pressure

The pressure exerted by a fluid at any given point within the fluid, dependent on the depth and density of the fluid.

Eyeball

The organ of vision in the human body, spherical in shape, which captures light and processes it into signals sent to the brain.

Glaucoma

A group of eye conditions that can cause blindness by damaging the optic nerve, usually due to high pressure in the eye.

Liver Cirrhosis

A late stage of scarring (fibrosis) of the liver caused by many forms of liver diseases and conditions, such as hepatitis and chronic alcoholism.