Because of the consistency principle,inventory should never be written down below cost.

Question

Quizplus · Accepted Answer

The consistency principle in accounting refers to the consistent application of accounting methods and principles over time to ensure comparability of financial statements. However, inventory can be written down below cost if its market value falls below its cost, as per the lower of cost or market rule, to reflect the loss in value and adhere to the principle of conservatism in accounting.

Because of the Consistency Principle,inventory Should Never Be Written Down