In each accounting period,a manager can select the inventory costing method that yields the most positive net income.
BT: Knowledge

Question

Quizplus · Accepted Answer

The selection of inventory costing method should not be based on which method yields the most positive net income, but rather on the method that best reflects the actual flow of goods and meets accounting standards. The choice of inventory costing method can impact inventory valuation, cost of goods sold, and net income, but the primary objective is to provide accurate and reliable financial information rather than manipulating net income.

In Each Accounting Period,a Manager Can Select the Inventory Costing