Indirect costs were understated. This error will cause:

Question

Quizplus · Accepted Answer

Understating indirect costs does not directly affect the cost of goods manufactured, cost of goods sold, or net income in the manner described by options A, B, or C. The impact of understating indirect costs would depend on how these costs are allocated and the specific accounting practices in place, but none of the provided options accurately captures the direct consequence of such an error.

Indirect Costs Were Understated. This Error Will Cause