Which of the Following Statements Is Incorrect

Which of the following statements is incorrect?

A) External financial reporting requirements call for allocating manufacturing overhead to work-in-process inventory.
B) Variable overhead is allocated on the basis of production expected to be achieved over a number of periods after taking planned maintenance into consideration (normal capacity) .
C) Over/underabsorbed overhead can be reported on the income statement or allocated among inventory accounts on the balance sheet.
D) Proration of over/underabsorbed overhead is chosen when it will alter an investment decision.
E) Firms involved in cost-plus projects will choose to recost each job because the firm's revenue is tied to its costs.