Which of the Following Correctly Describes the Accounting for Administrative

Multiple Choice

Which of the following correctly describes the accounting for administrative expenses of a manufacturing company?

A) Administrative expenses are product costs and are expensed as incurred.
B) Administrative expenses are period costs and are expensed as incurred.
C) Administrative expenses are product costs and are expensed when the manufactured product is sold.
D) Administrative expenses are period costs and are expensed when the manufactured product is sold.