Proper Costs Allocation for Inventory Costing and Cost-Of-Goods-Sold Computations Are

Multiple Choice

Proper costs allocation for inventory costing and cost-of-goods-sold computations are important because:

A) inventory costing is essential for proper balance sheet presentation
B) most states have laws requiring proper balance sheet presentation and recommended allocation methods
C) cost of goods sold is an important component in the determination of net income
D) Both A and C are correct.