During Her First Year with the Company,Ann Mistakenly Accumulated Some

Multiple Choice

During her first year with the company,Ann mistakenly accumulated some of the company's period costs in ending inventory.Which of the following indicates how this error affects the company's financial statements assuming number of units produced exceeded number of units sold during the period?

A) Cash flows from operations are understated.
B) Gross margin is unaffected.
C) Net income is overstated.
D) Inventory is understated.