Which of the following statements regarding the value chain is false? Product costs are held on the Balance Sheet as an Inventory asset until the product is sold. Period costs are immediately expensed on the Income Statement as they are incurred, and include only fixed costs. Conversion costs include direct labor and manufacturing overhead costs. o Product costs include both direct and indirect costs, as well as both variable and fixed costs. Which of the following costs related to manufacturing shoes would be considered direct materials? Salaries of the employees developing new designs of the shoes o Wages of employees working on the assembly of the shoes Foam used for the insole of the shoe and fabric used for the upper body of the shoe Salaries of the employees checking the quality of the shoes as they leave the manufacturing line