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.

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Definitions:

Observer Bias

A form of bias that occurs when the presence or expectations of the observer inadvertently influence the behavior of subjects or interpretation of data.

Techniques

Specific methods or ways of doing something, usually referring to a skill or craft.

Correlation

A statistical measure that indicates the degree to which two or more variables fluctuate together.

Achievement Motivation

A drive or desire to excel or achieve in tasks, leading individuals to pursue goals with determination and persistence.