Question

Question content area product costs a. appear on both the income statement and balance sheet b. are expensed as costs are incurred for direct labor, direct materials, and factory overhead c. appear only on the balance sheet d. appear only on the income statement

Answer 1

Product costs are expensed as costs are incurred for direct labor, direct materials, and factory overhead.

Step-by-step explanation:

Product costs b) are expensed as costs are incurred for direct labor, direct materials, and factory overhead. These costs are recorded on the income statement as expenses. Examples of product costs include wages paid to workers who assemble a product, the cost of raw materials used in production, and the cost of operating machinery in the factory.