Costs That Are First Assigned to Inventory Are Called

question 80

Multiple Choice

Costs that are first assigned to inventory are called:

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

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Definitions:

Trading Securities

Financial instruments bought and held primarily for selling them in the near term to profit from short-term price movements.

Fair Value

An estimate of the market value of an asset or liability, based on the price at which willing parties would enter into a transaction.

Adjusting Entry

A journal entry made at the end of an accounting period to allocate income and expenditure to the appropriate periods.

Debt Investments

Investments in bonds or other debt securities where the investor lends money to an entity in exchange for interest payments and the return of principal.