Question

Ward hardware used the fifo inventory costing method in 2017. ward plans to continue using the fifo method in future years. which accounting principle is most relevant to? ward's decision?

Answer 1

The appropriate response is Consistency Principle. The consistency principle expresses that, once you receive a bookkeeping rule or technique, keep on following it reliably in future bookkeeping periods. Just change a bookkeeping rule or technique if the new form somehow enhances revealed budgetary outcomes.