During 2016, Bryant Electronics changed to the weighted-average-cost method of accounting for inventory. Suppose that during 2017 Bryant Electronics changes back to the FIFO method and in the following year switches back to the weighted-average-cost method again.
Required
1. What would you think of a company's ethics if it changed accounting methods every year?
2. What accounting principle would changing methods every year violate?
3. Who can be harmed when a company changes its accounting methods too often? How?