Which Statement Concerning Inventory Is Incorrect

question 23

Multiple Choice

Which statement concerning inventory is incorrect?

• A) Consistency rules out ever switching to an alternative accounting method.
• B) Consistency is an important consideration when alternative accounting methods exist.
• C) Once an inventory costing method is selected management should not deliberately switch to another to manipulate profits.
• D) Accounting data produced in different accounting periods is not comparable if arbitrary changes in accounting methods are permitted.

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Definitions:

Workplace

A location or virtual space where individuals are employed and engage in tasks related to their job responsibilities.

Halo Effect

A cognitive bias in which an observer's overall impression of a person, company, brand, or product influences their feelings and thoughts about that entity's character or properties.

Personal Attributes

Individual characteristics or traits that define a person's behavior, attitude, and personality.

Stereotypes

Oversimplified and widely held beliefs or generalizations about a group of people, which often lead to misconceptions and biases.