Which of the Following Statements About Inventory Costs Is True

Multiple Choice

Which of the following statements about inventory costs is true?

A) Factory overhead consists of manufacturing costs other than direct materials and direct labour.
B) Net realizable value is the expected sales price plus selling costs.
C) FIFO Reserve is a contra sales account for the excess of FIFO over weighted-average inventory.
D) Purchases discounts increase sales revenue to arrive at net sales.