Selection of an inventory costing method by management does not usually depend on

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The selection of an inventory costing method is not usually dependent on the fiscal year end because the method should reflect the actual cost flow of inventory and not be influenced by the timing of the fiscal year end. The selection may be based on income statement and balance sheet effects, as well as tax effects, but these factors should not be the primary consideration in selecting a costing method. It is important for management to choose a method that accurately reflects the cost flow of inventory and provides reliable financial information for decision-making.

Selection of an Inventory Costing Method by Management Does Not