Final answer:
Inventoriable costs are capitalized until the goods are sold, at which they are expensed; these are critical in management accounting and are considered manufacturing costs, not non-manufacturing costs.
The correct answer is b, as they are expensed in the period products are sold.
Step-by-step explanation:
Inventoriable costs are those costs that are directly associated with the production of goods and are capitalized as inventory on the balance sheet until the goods are sold. At this point, they are expensed on the income statement. Therefore, inventoriable costs are expensed in the accounting period in which the products are sold (option b),
which contrasts with period costs such as administrative and marketing costs that are expensed as incurred. Inventoriable costs are critical in both financial and management accounting because they help determine the cost of goods sold and gross profit, as well as in decision-making processes related to production and pricing. They are not, however, synonymous with non-manufacturing costs; instead, they are considered manufacturing costs, which include direct labor, direct materials, and manufacturing overhead.
Therefore, the correct option in the final answer is b, as inventoriable costs are recorded as an expense in the period the related products are sold.