Changing inventory methods to take advantage of the tax breaks offered by LIFO is not a valid justification for a change in methods.

Name: Changing inventory methods to take advantage of the tax breaks offered by LIFO is not a valid justification for a change in methods.
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Question

Quizplus · Accepted Answer

According to accounting principles, changes in inventory methods should be justified by the need for more accurate financial reporting or compliance with accounting standards, not for the purpose of obtaining tax advantages.

Changing Inventory Methods to Take Advantage of the Tax Breaks