Which of the following statements are true? All costs in a merchandising company are period costs. Reason: Inventory purchases in a merchandise company are product costs. Period costs do not flow through the inventory accounts. Inventoriable costs are expensed in the period in which they are incurred. Reason: Inventoriable costs are product costs that attach to the product and are expensed when the product is sold. Period costs are expensed when incurred. Correct Answer Period costs do not flow through the inventory accounts. Period costs are expensed when incurred