A change in the inventory cost determination method can only occur if the physical flow of inventory changes and a different method would result in more relevant information in the financial statements.

Question

Quizplus · Accepted Answer

A change in the inventory cost determination method is permissible under accounting standards if it results in more relevant and reliable information in the financial statements, not solely based on changes in the physical flow of inventory.

A Change in the Inventory Cost Determination Method Can Only