The consistency concept:
A) Prescribes a company to consistently apply the same accounting method of inventory valuation, an exception being when a change from one method to another will improve its financial reporting.
B) Requires a company to use one method of inventory valuation exclusively.
C) Requires that all companies in the same industry use the same accounting methods of inventory valuation.
D) Is also called the full disclosure principle.
E) Is also called the matching principle.

Question

Quizplus · Accepted Answer

The consistency concept prescribes that a company should consistently apply the same accounting method of inventory valuation, provided that a change from one method to another will not improve its financial reporting. This concept ensures comparability of financial information across different periods for a company.

The Consistency Concept