Which of the Following Statements Is TRUE of the Flow

question 229

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 reported on the income statement at the end of the accounting period.

---

Definitions:

Orexin

A type of neuropeptide that plays an important role in regulating arousal, wakefulness, and appetite.

Set Point

A theory suggesting that individuals have a pre-set, natural body weight or condition that the body regulates and tends to maintain.

Physical Activity

Any bodily movement produced by skeletal muscles that requires energy expenditure, including activities undertaken while working, playing, carrying out household chores, traveling, and engaging in recreational pursuits.

Stable Body Weight

A condition where an individual's body weight remains relatively constant over time, indicating a balance between calorie intake and energy expenditure.