Question

A cost used up in the production of revenues is a(n)

a) unexpired cost
b) lost
c) expense
d) asset

Answer 1

A cost used up in the production of revenues is expensed and recognized as an expense in the period it is incurred.

Step-by-step explanation:

A cost used up in the production of revenues is expensed. This means that it is recognized as an expense in the period it is incurred rather than being recorded as an asset on the balance sheet.

Examples of expensed costs include wages, utility bills, and raw materials used in production.