Profits are down so the controller decides to change thecorporations accounting

Profits are down so the controller decides to change thecorporations accounting policy relating to inventory costing. Thechange will allow the corporation to report higher income andhigher assets although the physical inventory has not changed.Which of the following statements is most correct? a. The stockprice increases if the stock market is inefficient b. If the stockprice increases the stock market is efficient. c. The stock priceis likely to decrease because reported inventory is higher. d. Thestock price is likely to be unaffected because the stock market isefficient.