A company can change its inventory costing method without mentioning this change in its financial statements because it is an internal management decision.

Question

Quizplus · Accepted Answer

A company must disclose any changes in inventory costing method in its financial statements as it can have a significant impact on the reported profitability and financial position of the company. This is important for investors, creditors, and other stakeholders to evaluate the performance of the company.

A Company Can Change Its Inventory Costing Method Without Mentioning