If the FIFO inventory method was used last period, it should be used for the current and following periods because of
A) relevance.
B) neutrality.
C) understandability.
D) consistency.

Question

Quizplus · Accepted Answer

The FIFO inventory method should be used for the current and following periods because of consistency. Consistency requires that the same accounting principles and methods be used from period to period, ensuring comparability of financial statements over time. Therefore, if FIFO was used in the previous period, it should be used again in the current and following periods for consistency.

If the FIFO Inventory Method Was Used Last Period, It