The consistency principle stipulates that when a company begins using a given inventory valuation method (FIFO, LIFO, or the weighted-average cost method), the company should continue to use that method to prepare its financial statements until such time as its senior management, with concurrence from the firm’s independent auditors, concludes that another method would more fairly present the company’s financial condition and performance. Discuss why the consistency principle is important to investors and shareholders. If a company changes its method of accounting for its inventory, how will that change be disclosed in its financial statements?