Select the Incorrect Statement Regarding Upstream and Downstream Costs

question 132

Multiple Choice

Select the incorrect statement regarding upstream and downstream costs.

• A) Companies normally incur significant downstream costs.
• B) To be profitable, companies must recover the total cost of developing, producing, and delivering products.
• C) Pricing decisions must consider both upstream and downstream costs in addition to manufacturing costs.
• D) Upstream and downstream costs are reported as product costs on the income statement.

---

Definitions:

Posture

The position in which someone holds their body when standing or sitting.

Cerebellum

The cerebellum is a major structure of the brain located beneath the cerebrum, responsible for coordinating voluntary movements, balance, and posture.

Brain Stem

The Brain Stem is the posterior part of the brain, adjoining and structurally continuous with the spinal cord, responsible for controlling basic life functions.

Medulla

The innermost part of an organ or structure, such as the medulla oblongata in the brain which controls vital functions like breathing and heart rate.