Which of the Following Correctly Describes the Accounting for Administrative

question 137

Multiple Choice

Which of the following correctly describes the accounting for administrative expenses of a manufacturing company?

• A) Administrative expenses are product costs and are expensed as incurred.
• B) Administrative expenses are period costs and are expensed as incurred.
• C) Administrative expenses are product costs and are expensed when the manufactured product is sold.
• D) Administrative expenses are period costs and are expensed when the manufactured product is sold.

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Definitions:

European Exploration

The period, starting in the late 15th century, during which European countries explored the world's oceans and territories, leading to discoveries, the establishment of trade routes, and the colonization of various regions.

Atlantic

A vast ocean that lies between the Americas to the west and Europe and Africa to the east.

Financing

The act of providing funds for business activities, making purchases, or investing, typically involving loans, equity investments, or other forms of financial support.

Columbus

Refers to Christopher Columbus, an Italian explorer who initiated the European exploration and colonization of the Americas by landing in the Caribbean in 1492.