Ray Aldag, the president of Raynard Company, is _ pleased. Raynard substantially increased its net in come in 1995 while keeping the number of units in its inventory relatively the same. Tom Erhardt, chief accountant, cautions Aldag, however.

Erhardt says that, since Raynard changed its method of inventory valuation, there is a consistency problem and it would be difficult to determine if Raynard is better off. Is Erhardt correct?

Why?