Select whether each statement is explaining an inventoriable cost or a period cost.

are all costs in the income statement other than cost of goods sold.

are all costs of a product that are regarded as an asset when they are incurred and then become cost of goods sold when the product is sold.

for a manufacturing company are included in work-in-process and finished goods inventory (they are "inventoried") to build up the costs of creating these assets.

Inventoriable costs Period costs are treated as expenses at the time they are incurred because they are presumed not to benefit future periods (or because there is not sufficient evidence to conclude that such benefit exists). Expensing these costs immediately best matches expenses to revenues.