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:

Full-Line Forcing

A business practice where a supplier requires retailers to stock an entire range of products in order to carry any of the supplier's items.

Tying Arrangement

A business practice where the sale of one product (the tying product) is conditioned on the purchase of another product (the tied product).

Supplier

A supplier is a business or individual that provides goods or services to another company or entity, typically as part of a supply chain.

Logistics Management

The part of supply chain management that plans, implements, and controls the efficient, effective forward, and reverse flow and storage of goods, services, and related information between the point of origin and the point of consumption.