Changing from Average Cost to FIFO over two accounting periods could be viewed as a violation of what accounting concept or principle?

Name: Changing from Average Cost to FIFO over two accounting periods could be viewed as a violation of what accounting concept or principle?
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Changing from one inventory cost flow assumption to another goes against the consistency principle, which requires companies to use the same accounting methods and procedures from one period to the next.

Changing from Average Cost to FIFO Over Two Accounting Periods