BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -Inventoriable costs are the costs incurred in the manufacturing or acquisition of a product. These costs are initially recorded in the balance sheet as current assets and do not appear in the income statement until the first unit is sold.

Detailed explanation-2: -Inventoriable costs are reported as an asset when incurred and expensed on the income statement when the product is sold. False. Operating income= Sales revenue-Cost of goods sold-operating expenses. For external reporting, GAAP requires that costs be classified as either variable or fixed.

Detailed explanation-3: -Inventoriable costs are also known as product costs.

Detailed explanation-4: -In accounting, inventoriable costs refer to all costs incurred to obtain or produce the end-products. Apply these costs to the products the company produces and sells. The cost of raw materials, direct labor, and part of overhead are all examples.

Detailed explanation-5: -Product costs are sometimes referred to as “inventoriable costs.” When the products are sold, these costs are expensed as costs of goods sold on the income statement. Period costs are the costs that cannot be directly linked to the production of end-products.