Which of the following statements is incorrect?

A.

Costs incurred in the production link in the value chain for a manufacturer are expensed when the related unit of product is sold.

B.

Product costs for a manufacturer are categorized as either direct material, direct labor, or manufacturing overhead costs.

C.

Period costs for a merchandiser are expensed as selling, general, and administrative expenses.

D.

Period costs are relevant for purposes of calculating Gross Profit on the Income Statement for a both a merchandiser and a manufacturer.

E.

All links in the value chain applicable to a service company are considered period costs.