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:

Rigidly Segregated

An environment or society where individuals are strictly separated based on certain characteristics, such as race.

CCC

The Civilian Conservation Corps, a public work relief program that operated in the United States for unemployed, unmarried men during the Great Depression, part of the New Deal.

Agricultural Adjustment Administration

A New Deal agency established in 1933 to improve agricultural prices by controlling production, often through paying farmers not to plant on part of their land.

Sharecroppers

Farmers who rent small plots of land to farm and in return, they give a portion of their crop yield to the landlord as rent.