Which of the following statements about product costs is true?

A) Product costs are deducted from revenue when the production process is completed.
B) Product costs are deducted from revenue as expenditures are made.
C) Product costs associated with unsold finished goods and work in process appear on the balance sheet as assets.
D) Product costs appear on financial statements only when products are sold.

Product costs associated with unsold finished goods and work in process appear on the balance sheet as assets. This includes direct materials, direct labor, and overhead costs. Once the products are sold, these costs are transferred from the balance sheet to the income statement as expenses. Option A is incorrect because product costs are not deducted from revenue at the completion of production, but rather when the products are sold. Option B is incorrect because product costs are not deducted from revenue as expenditures are made, but rather at the time of sale. Option D is incorrect because product costs are recognized on financial statements before the products are sold, as work in process and finished goods inventory are reported on the balance sheet.