Which one of the following statements about inventory is not correct?
A) An increase in inventory levels is always a sign of inefficiency in inventory management.
B) The measurement of inventory affects both the balance sheet and the income statement within an accounting period.
C) The ending inventory of one accounting period becomes the beginning inventory of the next accounting period.
D) The cost of inventory can vary over time and may be affected by technological innovation.
Correct Answer:
Verified
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