The consistent application of an inventory costing method is essential for
A) prudence.
B) accuracy.
C) comparability.
D) efficiency.

Question

Quizplus · Accepted Answer

Consistent application of an inventory costing method is essential for comparability, as it ensures that financial statements can be compared across different accounting periods and between different companies in the same industry. This helps investors and stakeholders make informed decisions based on accurate and reliable financial information.

The Consistent Application of an Inventory Costing Method Is Essential