Which choice below best describes product cost as defined by generally accepted accounting principles?
All factory costs
Any cost caused by the product (e.g., warranty repairs expense)
Direct and variable factory costs
A cost that goes on the income statement as an expense
Which choice below best describes period cost as defined by generally accepted accounting principles?
A cost for a resource used up outside the factory
All costs incurred by the organization
All direct costs, whether fixed or variable
Under full costing (also known as absorption costing or GAAP costing) inventory includes:
All of the above
Manufacturing overhead. Get Accounting Homework Help Today
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