Which of the Following Is True of Product Costs

question 107

Multiple Choice

Which of the following is true of product costs?

• A) They are expensed in the period they are paid.
• B) For external reporting, GAAP requires that they be expensed before the products are sold.
• C) They are first recorded in an inventory account.
• D) For merchandising companies, product costs do not include freight costs.

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Judiciary Act

Legislation passed by Congress to establish the federal judiciary system, including the Supreme Court, federal district and circuit courts, and the office of the Attorney General.

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Chief Justice

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John Marshall

The fourth Chief Justice of the United States (1801-1835), whose court opinions helped lay the basis for American constitutional law and made the Supreme Court a coequal branch of government.