Which One of the Following Statements Regarding Changing Inventory Costing

question 15

Multiple Choice

Which one of the following statements regarding changing inventory costing methods is true?

• A)A change in inventory methods can be justified if the change is made to better match profits with revenue.
• B)Changing inventory costing methods violates consistency.
• C)One place that the reader of an annual report would be able to identify that a company changed inventory costing methods is the statement of stockholders' equity.
• D)Tax advantages are valid justification for changing inventory costing methods.

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