Under the disclosure principle, the inventory accounting method must be disclosed.

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The disclosure principle requires that all significant accounting policies and methods be disclosed in financial statements. This includes the inventory accounting method, which involves the specific identification, first-in, first-out (FIFO), last-in, first-out (LIFO), and weighted average cost methods, among others. Disclosure allows users of financial statements to understand how inventory is valued and how this impacts the company's financial performance.

Under the Disclosure Principle, the Inventory Accounting Method Must Be