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

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Inventoriable costs

Period costs

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

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Inventoriable costs

Period costs

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.$$

$$

Inventoriable costs

Period costs

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.

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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.