An EXCEPTION to the General Rule That Costs Should Be

question 83

Multiple Choice

An EXCEPTION to the general rule that costs should be charged to expense in the period incurred is

• A) factory overhead costs incurred on a product manufactured but not sold during the current accounting period.
• B) interest costs for financing of inventories that are routinely manufactured in large quantities on a repetitive basis.
• C) general and administrative fixed costs incurred in connection with the purchase of inventory.
• D) sales commission and salary costs incurred in connection with the sale of inventory.

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