Because inventory errors are self-correcting in following accounting periods, managers will be able to make correct decisions based on changes in net income and cost of goods sold.

Question

Quizplus · Accepted Answer

Inventory errors can have a significant impact on net income and cost of goods sold, which can lead to incorrect decision making by managers. It is important to promptly correct inventory errors to ensure accurate financial statements and decision making.

Because Inventory Errors Are Self-Correcting in Following Accounting Periods, Managers