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.

Question

Quizplus · Accepted Answer

Upstream and downstream costs are not reported as product costs on the income statement. They are typically reported as separate categories such as research and development expenses, marketing expenses, and distribution expenses.

Select the Incorrect Statement Regarding Upstream and Downstream Costs