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Which Statement Concerning Inventory Is Incorrect

Question 23

Multiple Choice

Which statement concerning inventory is incorrect?


A) Consistency rules out ever switching to an alternative accounting method.
B) Consistency is an important consideration when alternative accounting methods exist.
C) Once an inventory costing method is selected management should not deliberately switch to another to manipulate profits.
D) Accounting data produced in different accounting periods is not comparable if arbitrary changes in accounting methods are permitted.

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