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:

Corporate Strategies

Long-term plans made by a company to achieve competitive advantage and successfully operate in the market.

Human Resource Specialists

Professionals responsible for recruiting, screening, interviewing, and placing workers, as well as handling employee relations, payroll, benefits, and training.

Affirmative Action

Policies and procedures designed to promote the employment, education, or advancement of minorities and women, to correct past disadvantages.

Minority Group Members

Individuals belonging to a smaller segment within a population, often distinguished by racial, religious, ethnic, or socio-economic differences.