Which of the Following Statements Regarding Comparisons Made in Managing

Multiple Choice

Which of the following statements regarding comparisons made in managing inventory is not true?

A) In making comparisons of financial statements, it is desirable to compare data calculated using the same inventory costing methods.
B) The inventory turnover ratio and days to sell measure will be affected by the cost flow assumptions used, which causes problems for financial statements users.
C) Because of the use of different costing methods, comparisons of different companies are more difficult.
D) An increase in inventory account balances always indicates a less favorable situation.