Surefeet Corporation changed its inventory valuation method. Which characteristic is jeopardized by this change? Multiple Choice Comparability. Representational faithfulness. Consistency. Feedback value.

Surefeet Corporation

Change of Inventory Valuation Method and the characteristic jeopardized by the change:

Consistency.

Explanation:

Consistency in accounting terms is the ability to continue a practise or method from one period to the next.   It is one of the five characteristics of high quality accounting information.  Others are accuracy, completeness, uniqueness, and timeliness.  Inventory valuation method in use affects the cost of goods and the reported profit or income.  Different methods used by entities include the First-in, First-out Method, Last-in, First-out Method, Weighted Average Method, and Specific Identification.

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