Which of the Following Statements About the Uniform Capitalization (Unicap)

Multiple Choice

Which of the following statements about the uniform capitalization (unicap) rules is false?

A) The unicap rules determine the annual costs that firms must capitalize to inventory for tax purposes.
B) The unicap rules may require capitalization of more indirect costs to inventory for tax purposes than for book purposes.
C) The unicap rules may result in a book/tax difference for cost of goods sold.
D) The unicap rules apply to all taxpayers with inventory, regardless of size.