A product cost is

A) expensed in the period in which the product is manufactured
B) shown with current liabilities on the balance sheet
C) shown with operating expenses on the income statement
D) expensed in the period the product is sold

Product Cost

The total amount of costs directly assigned to the creation of a product, including materials, labor, and overhead.

Operating Expenses

All the costs associated with the day-to-day operations of a business, excluding the direct costs of producing goods and services.

Current Liabilities

Short-term financial obligations that are due within one year or within the normal operating cycle of a business, including accounts payable, short-term loans, and taxes payable.