Question 1
Inventoriable costs are expensed on the income statement ________.
◦ when direct materials for the product are purchased
◦ when the direct materials are used in production.
◦ when the products are sold
◦ when the goods move from work-in process to finished goods account
Question 2
Manufacturing overhead costs are also referred to as ________.
◦ indirect manufacturing costs
◦ prime costs
◦ direct manufacturing costs
◦ direct material