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

Question

Quizplus · Accepted Answer

Consistency does not rule out ever switching to an alternative accounting method. It simply means that once a method is chosen, it should be consistently applied and any changes should be disclosed and justified.

Which Statement Concerning Inventory Is Incorrect