Answer
Costs are recognized as expenses when the product is sold due to the requirement of the expense recognition principle, which requires matching the expenses with the corresponding revenues. The efforts of raising revenue should be matched with the accomplishment (which is the revenue raised).
Work Step by Step
Costs are recognized as expenses when the product is sold due to the requirement of the expense recognition principle, which requires matching the expenses with the corresponding revenues. The efforts of raising revenue should be matched with the accomplishment (which is the revenue raised).
