A Company Should Not Change the Inventory Costing Method Each

question 186

True/False

A company should not change the inventory costing method each period in order to maximize net income.This is an example of the disclosure principle.

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Definitions:

Public Company Accounting Oversight Board

A regulatory agency that is charged with the task of making certain that correct, unbiased, and comprehensive data finds their way to potential investors, so that they can make informed decisions about investment opportunities.

Certified Financial Advisor

A professional who has obtained certification and is qualified to provide financial planning and advice to clients.

Fiduciary Duty

A legal obligation of one party to act solely in the interest of another party. For example, corporate directors have a fiduciary duty to act in the best interests of their shareholders.

Malpractice

The failure of a professional to provide services with the skill and care that is ordinarily provided by competent professionals, leading to harm or loss.