The consistency principle means that one costing method, such as FIFO or moving weighted average, has to be used exclusively.

Name: The consistency principle means that one costing method, such as FIFO or moving weighted average, has to be used exclusively.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The consistency principle requires that a company should stick to one costing method to ensure consistency in financial reports and decision-making. It is not appropriate to use different methods for different products or periods.

The Consistency Principle Means That One Costing Method, Such as FIFO