Payroll and Personnel Costs at ABC Manufacturing Are a Major

Multiple Choice

Payroll and personnel costs at ABC Manufacturing are a major expense.This means that improper allocation or misclassification of labour costs could result in

A) a material misstatement of net income.
B) a net effect that is negligible when costing inventory.
C) quality control problems with respect to the production of finished products.
D) incorrect payment of payroll to employees.