A company can change its inventory costing method without mentioning this change in its financial statements since it is a decision made by internal management.

Question

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A company is required to disclose any changes in accounting policies, including changes in inventory costing methods, in its financial statements. Failure to disclose such changes can result in misleading financial statements and can be considered a violation of accounting principles and regulations.

A Company Can Change Its Inventory Costing Method Without Mentioning