Which of the following statements about Inventories is false?

A. The cost of inventories of a service provider consists primarily of labor and other costs of personnel and attributable overhead. B. Storage costs are excluded from cost of inventories and recognized as expenses in the period when incurred, unless necessary in the production process. C. Using the lower of cost or net realizable value convention, cost is preferably computed using either FIFO or weighted average. D. The cost of conversion of inventories does not include fixed production overhead.