Which Statement Concerning Inventory Is Not True

question 39

Multiple Choice

Which statement concerning inventory is not true?

• A) Consistency is an important consideration when alternative accounting methods exist.
• B) Once an inventory costing method is selected management should not deliberately switch to another to manipulate profits.
• C) Accounting data produced in different accounting periods is not comparable if arbitrary changes in accounting methods are permitted.
• D) Consistency rules out ever switching to an alternative accounting method.

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Definitions:

Normative

Relating to an ideal standard or model, or based on what is considered to be the normal or correct way of doing something.

Complement

A term used in various contexts, often denoting a thing that completes or goes well with another.

Interests

Activities, subjects, or areas that capture the attention, curiosity, or concern of an individual or group.

Goals

Targets or outcomes that an individual or group endeavors to achieve, often requiring planning and effort.