Which of the following statements is correct?

A. External financial reporting requirements do not require allocating manufacturing overhead to work-in-process inventory.

B. Only variable overhead can be allocated on the basis of production expected to be achieved over a number of periods after taking planned maintenance into consideration (normal capacity).

C. Over/underabsorbed overhead can be reported on the income statement or allocated among inventory accounts on the balance sheet and cost of goods sold.

D. Proration of over/underabsorbed overhead is only chosen when it will alter an investment decision.