when do inventoriable costs become expenses product costs are matched against sales revenue for inventoriable costs to become expenses under the matching principle

Name: ACC 212 Chapter 2 Notes
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Accounting 212 Chapter 2 Cost classifications for assigning costs to cost objects  Cost object – anything for which cost data are desired (products, customers, jobs, organizational subunits). Two types of costs: o Direct costs – costs that can easily be traced to a specified cost object  (If a printing company made brochures for a specific customer, the paper used to make the brochures would be a direct cost of that customer)  To be traced to a cost object such as a particular product, the cost must be caused by the cost object. o Indirect costs – costs that cannot easily be traced to a specified cost object