Which of the following statements is false?
A)Companies do not have to use the same inventory method for all items of inventory.
B)Companies do not have to consistently use the same inventory costing methods over time.
C)Use of the LIFO inventory method during a period of increasing unit costs may create a conflict of interest between the owners and managers.
D)A company choosing to maximize stockholders' equity during a period of increasing unit costs should use the FIFO inventory method.

Question

Quizplus · Accepted Answer

Companies are required to consistently use the same inventory costing methods over time to ensure comparability of financial statements across periods. Changing methods requires disclosure and justification.

Which of the Following Statements Is False