(A) Which of the following transactions would cause net income for the period to be understated and explain why your answer is correct feel free to make-up numbers to help your explanation?

a. Misclassifying period cost and considering it product cost

b. Misclassifying product cost and considering it period cost

c. All of the above

d. None of the above

EXPLAINATION:____________________________________________________________________________________________________________________________________________

(B) What is an upstream and downstream cost? Give an example of each that a bakery would have:

(Upstream):____________________________________________________________________

______________________________________________________________________________

(Downstream)_________________________________________________________________________________________________________________________________________________________