A Company Can Change Its Inventory Costing Method Without Mentioning

question 107

True/False

A company can change its inventory costing method without mentioning this change in its financial statements because it is an internal management decision.

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Definitions:

Magnuson-Moss Act

The Magnuson-Moss Warranty Act is a federal law that governs consumer product warranties in the United States, ensuring that manufacturers provide clear and detailed warranty information.

Written Warranty

A guarantee provided in written form by the maker or seller of a product, ensuring the product's condition, quality, or performance for a specified period.

Full Warranty

A comprehensive warranty that covers repair or replacement of any defect in a product during the warranty period.

Implied Warranty

A legal assumption that a product will perform as expected without explicit statements by the seller regarding its quality or performance.