Phonesonly manufactures various low-cost phones and is currently busy classifying costs, it has classified factory supervisory labour as an inventoriable cost and is not sure if this is correct. They have called you to discuss what (if any) would be the impact of their classification compared to if it were correctly classified? Any unsold inventory produced in the current period will be understated. Gross profit will not be impacted. Net profit will always be overstated. Any unsold inventory produced in the current period will be overstated. Net profit will always be understated