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.

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