13. Howard Lumber Company mistakenly classified as an expense a product cost that totaled $20,000. The company produced 2,000 units of product and sold 1,000 of them during the year. Management is paid a bonus equal to 2% of net income. In the year in which the mistake was made, A. product costs were overstated. B. management bonuses were overstated. C. the company's income statement portrayed a more favorable position than actually existed. D. the company's net income was understated.