Which of the Following Statements Concerning Product Costs Versus General,selling,and

question 134

Multiple Choice

Which of the following statements concerning product costs versus general,selling,and administrative costs is false?

• A) Product costs incurred during the period will initially appear as inventory on the balance sheet.
• B) General, selling, and administrative costs are always expensed when paid.
• C) Product costs may be divided between the balance sheet and income statement.
• D) General, selling, and administrative costs never appear as inventory on the balance sheet.

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Definitions:

Periodic Inventory System

An inventory system that updates inventory records and calculates cost of goods sold at the end of a reporting period, rather than continuously.

LIFO

Last In, First Out refers to an approach for evaluating inventory in which the items that were produced last are considered to be the first ones sold.

Weighted-Average Cost

A calculation used in inventory management and cost accounting that takes into account the varying costs of goods and determines an average cost for the goods sold.

Periodic Inventory System

An inventory system that updates inventory balances after a specific period, calculating COGS by a physical count.