Question: 1. Does the accounting concept of consistency preclude any changes from one accounting method to another?
2. If inventory errors are said to correct themselves, why are accounting users concerned when such errors are made?
3. Explain the following statement: "Inventory errors correct themselves."
4. What is the meaning of market as it is used in determining the lower of cost or market for inventory? 5. What guidance does the accounting constraint of conservatism offer?