Which of the Following Statements Is True of the Flow

question 76

Multiple Choice

Which of the following statements is true of the flow of product and period costs for a manufacturer?

• A)When the manufacturing process is completed, the costs are transferred to the Work-in-Process Inventory account.
• B)The cost of the finished goods that the manufacturer sells becomes its Cost of Goods Sold on the income statement.
• C)Period costs remain in inventory accounts on the balance sheet until the product is sold.
• D)All product costs that have been paid are expensed and shown on the income statement at the end of the accounting period.