The result of changing from FIFO to average cost is
A)included in operating revenues and expenses.
B)included in other revenues or expenses.
C)handled retrospectively.
D)ignored.

Question

Quizplus · Accepted Answer

Changing from FIFO to average cost involves making adjustments to previously reported financial statements, therefore it is handled retrospectively. This change affects the cost of goods sold as well as the ending inventory value, which will impact the reported net income for previous periods. It is not ignored or included in operating or other revenues/expenses.

The Result of Changing from FIFO to Average Cost Is