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Inventoriable costs are expensed on the income statement: when direct materials for the product are purchased...

Inventoriable costs are expensed on the income statement:

when direct materials for the product are purchased

after the products are manufactured

when the products are sold

not at any particular time, it varies

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Answer #1

Inventoriable costs are expensed on the income statement:-

c) when the products are sold

These costs are expensed off in income statement at the time of sale in the form of cost of goods sold. This is in line with matching principle where revenues are matched with the cost of the period of the sales.

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