Costs That Are First Assigned to Inventory Are Called

question 80

Multiple Choice

Costs that are first assigned to inventory are called:

• A) Period costs.
• B) Product costs.
• C) General costs.
• D) Administrative costs.
• E) Fixed costs.

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Definitions:

Credit Totals

The aggregate amount of credit entries recorded in a financial system or ledger.

Trial Balance

A spreadsheet where the totals of all ledger balances are gathered into equal totals in debit and credit columns for accounts.

Debit Column

A column in financial accounting used to record entries that decrease liabilities and increase assets or expenses.

Credit Column

A section on the right side of an accounting ledger used to record increases in liability, equity accounts, and revenue, or decreases in assets and expense accounts.