Which of the Following Statements Concerning Product Costs Versus General,selling,and

question 134

Multiple Choice

Which of the following statements concerning product costs versus general,selling,and administrative costs is false?

• A) Product costs incurred during the period will initially appear as inventory on the balance sheet.
• B) General, selling, and administrative costs are always expensed when paid.
• C) Product costs may be divided between the balance sheet and income statement.
• D) General, selling, and administrative costs never appear as inventory on the balance sheet.

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Definitions:

Sales Forecasts

The process of estimating future sales. It helps businesses make informed decisions regarding inventory management, workforce needs, and financial planning.

Historical Trends

Analysis of past data to identify patterns or changes over time that may influence future outcomes or behaviors.

Economic Forecasts

Predictions about future economic conditions, including growth rates, inflation, and employment, based on current and historical data.

FA/Sales Ratio

Fixed Assets to Sales Ratio; measures the efficiency of a firm's use of its fixed assets to generate sales.