How should the expense be reported on that year’s financial statements?

On the last day of the year, a total cost of S 150.000 was incurred in indirect labor related to one of the key products an organization makes.

How should the expense be reported on that year’s financial statements?
A . It should be reported as an administrative expense on the income statement.
B . It should be reported as period cost other than a product cost on the management accounts
C . It should be reported as cost of goods sold on the income statement.
D . It should be reported on the balance sheet as part of inventory.

View Answer

Answer: C