Distinguish between inventoriable costs and period costs. a. inventoriable costs include material costs and are capitalized as assets to the company until the items are sold. period costs include labor and overhead costs and are expensed as incurred. period costs are reported in the income statement within the cost of goods sold account. b. inventoriable costs are all costs of goods purchased that are resold in a subsequent period. period costs are all costs of goods purchased that are resold within the same period. c. inventoriable costs are all costs of a product that are considered as assets in the balance sheet when they are incurred and that become cost of goods sold when the product is sold. period costs are all costs in the income statement other than cost of goods sold. period costs are treated as expenses of the accounting period in which they are incurred because they are expected to not benefit future periods. d. inventoriable costs include direct manufacturing materials and direct manufacturing labor costs that are capitalized into inventory and remain on the balance sheet until sold. period costs include indirect manufacturing (or manufacturing overhead) costs and are expensed as incurred through the cost of goods sold account.