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:

Implied Warranty of Merchantability

An implicit guarantee that a product will meet a minimum level of quality and functionality as expected for goods of its kind.

Implied Warranty of Fitness

An assurance, not explicitly stated, that a product will meet a buyer's needs for a particular purpose.

Express Warranty

An explicit promise made by a seller regarding the quality, condition, or performance of the goods being sold.

New England Seafood Chowder

A traditional creamy soup from the New England region made with seafood like clams and fish, potatoes, onions, and celery.