Which principle of accounting requires the use of a single inventory method and also assumes that a change to another inventory method should be made only after careful analysis and evaluation?

A. Consistency
B. Realization
C. Full-disclosure

Correct Answer: A

Consistency requires that the same inventory method be used for each accounting period. However, if changing inventory costing methods will result in a more accurate presentation of the financial data of the firm, the change can be justified and initiated.