How competitors calculate inventory cost is least likely to affect comparisons between competitors if inventory makes up a:
A)large percentage of assets and inventory costs are stable.
B)large percentage of assets and inventory costs are not stable.
C)small percentage of assets and inventory costs are not stable.
D)small percentage of assets and inventory costs are stable.

Question

Quizplus · Accepted Answer

Different accounting methods for inventory are least likely to affect the comparison of financial ratios among competitors if inventory is a small proportion of assets and inventory levels are stable.

How Competitors Calculate Inventory Cost Is Least Likely to Affect