Which of the following statements is correct?

A. External financial reporting requirements requires allocating manufacturing overhead to work-in-process inventory.

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

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

D All of the answers are incorrect.