Question 2 2 pts Which of the following statements is true? O A. For financial r

Question

Question 2 2 pts Which of the following statements is true? O A. For financial reporting purposes, merchandising firms expense the cost of items when they purchase them B. Product costs always appear "below the line" for gross margin C. The terms cost of goods sold and costs of goods manufactured are used interchangeably D. As with service firms, period costs appear below the line for gross margin E. Product costs are often referred to as inventoriable costs because these are the costs that firms attach to inventories of work in process and finished goods. Both D &E; are correct

Explanation / Answer

Both D and E is Correct

as with service firm, the period cost will arrear bellow the line for gross margin

Product costs are referred to as inventorial costs because these are the costs that firms attach to inventories of work in progress and finished goods

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