Select the Incorrect Statement Regarding Costs and Expenses

question 139

Multiple Choice

Select the incorrect statement regarding costs and expenses.

• A) Some costs are initially recorded as expenses while others are initially recorded as assets.
• B) Expenses are incurred when assets are used to generate revenue.
• C) Manufacturing-related costs are initially recorded as expenses.
• D) Non-manufacturing costs should be expensed in the period in which they are incurred.

---

Definitions:

Boston Consulting Group Portfolio Analysis

A strategic business tool used for analyzing a firm's business units or product lines based on their market growth rate and relative market share.

Athletic Footwear Market

The sector of the retail industry that focuses on shoes designed specifically for sports and physical activities.

Market Leader

A company that has the highest sales or market share in its industry or market.

Marketing Metrics

Quantitative measures used to evaluate, compare, and optimize marketing strategies and performances.