Select the incorrect statement regarding upstream and downstream costs. A. Companies normally incur significant downstream costs. B. To be profitable, companies must recover the total cost of developing, producing, and delivering products. C. Pricing decisions must consider both upstream and downstream costs in addition to manufacturing costs. D. Upstream and downstream costs are reported as product costs on the income statement.

D. Upstream and downstream costs are reported as product costs on the income statement.

Explanation:

Downstream cost is the cost that are spend by the company when the process of the production is completed or the product is ready for delivery made to the customers so this cost would be considered as a distribution to the marketing

While on the other hand the upstream cost is the cost i.e. spend prior to the process of the production like buying of the raw material, product design & development etc

So the downstream would not be recorded as a product cost but it would be recorded as a period cost in terms of the selling and marketing expense

Therefore the option D is incorrect