Sue Leonard, the president of Leon Company, is pleased. Leon substantially increased its net income: in 2007

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Sue Leonard, the president of Leon Company, is pleased. Leon substantially increased its net income: in 2007 while keeping its unit inventory relatively the same. Dan Noonan, chief accountant, cautions Sue, however. Noonan says that since Leon changed its method of inventory valuation, there is a consistency problem and it is difficult to determine whether Leon is better off. Is Noonan correct? Why or why not?

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Financial Accounting Tools For Business Decision Making

ISBN: 9780471730514

4th Edition

Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso

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