Product Costs

question 177

Multiple Choice

Product costs:

• A) Are moved to the income statement for any unsold inventory at the end of the year.
• B) Include selling and administrative expenses.
• C) Are expenditures identified more with a time period rather than with units of product.
• D) Are expensed on the income statement when incurred.
• E) Are expenditures necessary and integral to finished products.

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Definitions:

Accumulated Depreciation

The total amount of depreciation expense that has been recorded for an asset over its useful life.

Translated Income Statement

An income statement that has been converted from one currency into another currency, typically used by multinational corporations to consolidate foreign operations.

Gain or Loss

The financial result that occurs when the selling price of an asset differs from its book value.