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.

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Definitions:

Broadcast Medium

A method or channel for transmitting information, entertainment, or other messages to a large, dispersed audience simultaneously.

Coaxial

A type of electrical cable consisting of a central conductor surrounded by an insulating layer and an outer conducting shield, widely used for transmitting television, telephone, and internet signals.

Microwave

Electromagnetic waves with wavelengths shorter than one meter but longer than one millimeter, used in cooking, communication technologies, and radar.

Radio

A technology that uses radio waves to carry information, such as sound, by systematically modulating some property of electromagnetic energy waves transmitted through space.