Howard Lumber Company mistakenly classified a product cost as an expense that totaled $$19,800.$ The company produced $1,980$ units of product and sold $990$ 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$)$the company's income statement portrayed a more favorable position than actually existed

C$)$management bonuses were underpaid.