Compare the effects of the different costing methods on the financial statements
-Consistency is mandated by:

Question

Quizplus · Accepted Answer

The different costing methods (such as FIFO, LIFO, average cost, etc.) can have varying effects on the financial statements, particularly impacting inventory valuation and cost of goods sold. Consistency in the application of accounting policies is mandated by IFRS (International Financial Reporting Standards) and Canadian ASPE (Accounting Standards for Private Enterprises). Therefore, Choice C is the best option as it is the only one that accurately reflects the governing bodies responsible for mandating consistency in accounting policies.

Compare the Effects of the Different Costing Methods on the Financial