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Inventory Valuation Method Changes and Share Prices. Voluntary accounting policy changes are said to be unintended signals about the financial health and future prospects of

Inventory Valuation Method Changes and Share Prices. Voluntary accounting policy changes are said to be unintended signals about the financial health and future prospects of a firm from management to a firms shareholders. Discuss how and why you would expect the capital markets to react to news that a company was voluntarily changing its inventory valuation policy from (a) LIFO to FIFO and from (b) FIFO to LIFO.

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