A change in the method of cost determination for inventory must be disclosed in the ﬁnancial statements.

Name: A change in the method of cost determination for inventory must be disclosed in the ﬁnancial statements.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

A change in accounting policy, such as the method of cost determination for inventory, must be disclosed in the financial statements as it can significantly impact the reported financial results. This is in accordance with Generally Accepted Accounting Principles (GAAP).

A Change in the Method of Cost Determination for Inventory