Which Statement Concerning Inventory Is Not True

question 39

Multiple Choice

Which statement concerning inventory is not true?

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

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Definitions:

Normative Processes

The establishment of standards or norms that guide the behavior of individuals within a group or society.

Milgram's Study

A series of social psychology experiments conducted by Stanley Milgram, which measured the willingness of study participants to obey an authority figure who instructed them to perform acts conflicting with their personal conscience.

Joining The Crowd

The act of assimilating with a larger group, often to feel a sense of belonging or to conform to group norms and behaviors.

Milgram's Study

A series of social psychology experiments conducted by Stanley Milgram, which explored obedience to authority figures by having participants administer what they believed were electric shocks to another person.