Question

Select the incorrect statement regarding costs and expenses.Multiple ChoiceExpenses are incurred when assets are used to generate revenue.Manufacturing-related costs are initially recorded as expenses.Some costs are initially recorded as expenses while others are initially recorded as assets.Non-manufacturing costs should be expensed in the period in which they are incurred.

Answer 1

Answer:

Manufacturing-related costs are initially recorded as expenses.

Explanation:

Manufacturing-related costs are initially recorded as expenses.

Manufacturing costs are incurred when there is a production of a product. These costs include the costs of direct material, direct labor, and manufacturing overhead. The costs are presented in the income statement as separate line items. These costs are incured by an entity during the production process.

Answer 2

Answer:

Manufacturing-related production costs are initially recorded as expenses

Explanation:

Cost is defined as an amount that has to be paid or spent to buy or obtain something. Cost can be specific, like, "What is the cost of a particular product?" or it can be a penalty, like consider the cost of missing the event.

Expenses sounds similar to that of cost: an amount of money that must be spent especially regularly ro pay for something.

Manufacturing cost are considered to as those that are spent to transform materials into finished goods. Manufacturing costs include direct materials, direct labor, and factory overhead.

Manufacturing cost are also known as factory cost or production cost