How many of the following statements are correct? product costs always appear "below the line" for gross margin. the gaap income statement combines controllable with non-controllable costs and fixed costs with variable costs. for financial reporting purposes, merchandising firms expense the cost of items when they purchase them. the total of all the indirect manufacturing inputs are sometimes referred to as manufacturing allocation.0 1 2 3 4

Adrawback of short-term contracting as an alternative to making a component in-house is thata. it is the most-integrated alternative to performing an activity so the principal company has no control over the agent. b. the supplying firm has no incentive to make any transaction-specific investments to increase performance or quality. c. it fails to allow a long planning period that individual market transactions provide. d. the buying firm cannot demand lower prices due to the lack of a competitive bidding process.