A change in inventory methods will make inventory ratios increase.

Name: A change in inventory methods will make inventory ratios increase.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

A change in inventory methods (e.g., from FIFO to LIFO) primarily affects the valuation of inventory and cost of goods sold, which can lead to changes in reported profits and asset values, but it does not inherently or directly cause inventory ratios to increase. The impact on inventory ratios depends on the direction and nature of the change.

A Change in Inventory Methods Will Make Inventory Ratios Increase