When a company changes from any inventory method to LIFO,the change is reported

A) prospectively because it is usually impractical to determine the effects of this change on prior years' net income.
B) as an error correction.
C) as a change in an accounting estimate.
D) using the retrospective approach.

Inventory Method

An accounting technique used to determine the cost of goods sold and the end-of-period inventory valuation.

Retrospective Approach

A method of applying certain changes in accounting policies to past periods as if the new policy had always been in place.

LIFO

Last In, First Out, an inventory valuation method where the most recently acquired items are assumed to be sold first, affecting cost of goods sold and inventory value on the balance sheet.