A Company Changes Its Inventory Costing Method Each Period in Order

question 171

True/False

A company changes its inventory costing method each period in order to maximize net income.This is a violation of the consistency principle.

---

Definitions:

Mental Set

A psychological tendency to approach problems in a certain way based on previous experiences and successes.

Problem

A situation, question, or issue that presents difficulty or uncertainty and necessitates a solution or answer.

Insight

A deep understanding of a person or situation, often resulting in a clear and sometimes sudden discernment of a solution to a problem.

Fixation

An obsessive focus or attachment to certain behaviors, people, or developmental stages, often hindering emotional development.