The Consistency Concept

question 126

Multiple Choice

The consistency concept:

• A)Requires a company to consistently use the same accounting method of inventory valuation unless a change will improve financial reporting.
• B)Requires a company to use one method of inventory valuation exclusively.
• C)Requires that all companies in the same industry use the same accounting methods of inventory valuation.
• D)Is also called the full disclosure concept.
• E)Is also called the matching concept

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Definitions:

Labor Force Turnover

The rate at which employees leave a company and are replaced by new employees.

Labor Productivity

Average product of labor for an entire industry or for the economy as a whole.

No Shirking Constraint

A principle in labor economics that suggests wages are set to deter employees from shirking or underperforming.

Unemployment

The state of being without a job despite actively looking for work.