Lifo method of accounting for inventory

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Reference no: EM13130492

During 2012, Crop-Paper-Scissors, a craft store, changed to the LIFO method of accounting for inventory. Suppose that during 2013 they switch back to the FIFO method and the following year switch back to LIFO again.

Requirements:

1. What would you think of a company's ethics if it changed accounting methods every year?

2. What acounting principle would changing every year violate?

3. Who can be harmed when a company changes its accounting methods too often? How?

Reference no: EM13130492

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