Which of the following statements is/are true with regards to all inventory costing methods?
A)The ending inventory balance and cost of goods sold move in the same direction.
B)The ending inventory balance and the cost of total assets move in the opposite direction.
C)The ending inventory balance and net income move in the same direction.
D)All of the answers are true.

Question

Quizplus · Accepted Answer

The ending inventory balance and net income move in the same direction because when the ending inventory increases, the cost of goods sold decreases, leading to higher net income, and vice versa.

Which of the Following Statements Is/are True with Regards to All