Which of the following statements is true? A. Inventoriable costs are assigned to inventories under GAAP. B. Product costs and design costs are interchangeable terms.

Question

Business

Boston Harrell

3 July, 01:04

Which of the following statements is true? A. Inventoriable costs are assigned to inventories under GAAP. B. Product costs and design costs are interchangeable terms.

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Answers (1)

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Makenzie Cuevas · Answer 1

A. Inventoriable costs are assigned to inventories under GAAP

Explanation:

Inventoriable costs are the cost incurred in the purchase or production of goods that will be sold and the cost incurred making the goods available for sale (such as freight).

These cost are capitalized and recognized as cost of inventory under GAAP.

Hence the right option is A.