Managerial Accounting Question?

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katyS

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During her first year with the company, Ann mistakenly accumulated some of the company's period costs in ending inventory. Which of the following indicates how this error affects the company's financial statements assuming number of units sold during this period?
a. Cash flows from operations are understated
b. Gross Margin is understated
c. Net Income is understated.
d. Inventory is overstated.
 
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