Costs That Are Expensed When Incurred Are Called

question 77

Multiple Choice

Costs that are expensed when incurred are called:

• A) product costs.
• B) direct costs.
• C) inventoriable costs.
• D) period costs.
• E) indirect costs.

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Definitions:

Original Entry

The initial recording of a financial transaction in the accounting records or journal, marking the first stage in the accounting process.

Transaction Recording

The process of documenting all business transactions in the accounting records of an organization, following accounting principles.

Collusion

A secret agreement between two or more parties for a deceitful, illegal, or fraudulent purpose to deceive others.

Prescribed Controls

Specific procedures and policies implemented by a company to safeguard its assets, ensure accurate financial reporting, and comply with laws and regulations.