30: A.2. Income Measurement

Question 1

To comply with the matching principle, the cost of labor services of an employee who participates in the manufacturing of a product normally should be charged to the income statement in the period in which the

A. product is completed.
B. Product is sold.
C. Work is performed.
D. Employee is paid.

Answer 1

The correct answer is B

When we sell the product, we recognize the COGS, then we are matching the cost with the revenues