2A4E FINER FOODS INC., A CHAIN OF SUPERMARKETS SPECIALIZING IN GOURME...
104.
CSO: 2A4e
LOS: 2A4e
Finer Foods Inc., a chain of supermarkets specializing in gourmet food, has been using
the average cost method to value its inventory. During the current year, the company
changed to the first-in, first-out method of inventory valuation. The president of the
company reasoned that this change was appropriate since it would more closely match
the flow of physical goods. This change should be reported on the financial statements as
a
a.
cumulative-effect type accounting change.
b.
retroactive-effect type accounting change
c.
change in an accounting estimate.
d.
correction of an error.