Which of the following statements iscorrect?

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

B. Product costs for a merchandiser are expensed asselling, general, and administrative expenses when the related unit is sold.

C. Product costs for a manufacturer are categorized as either directmaterial, directlabor, or manufacturing overhead costs.

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

E. More than one of the above statements is correct.