Changing from Average Cost to FIFO Over Two Accounting Periods

question 73

Multiple Choice

Changing from Average Cost to FIFO over two accounting periods could be viewed as a violation of what accounting concept or principle?

• A) Conservatism
• B) Consistency
• C) Materiality
• D) Entity
• E) Cost Principle

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Definitions:

Policy

A deliberate system of principles to guide decisions and achieve rational outcomes.

Psychiatric Patients

Individuals receiving treatment for mental health disorders, ranging from mood disorders to more complex psychiatric conditions.

Outpatients

Patients who receive medical treatment or undergo medical procedures without being admitted to the hospital for an overnight stay.

Mental Hospitals

Institutions specialized in providing treatment and care for individuals with mental illnesses.