How does correcting an inventory error in the second year lead to equalization of cost of goods sold over two years?

• A. The correction decreases second year cost of goods sold, creating permanent accounting discrepancies across periods.
• B. The correction reverses the first year's error impact, balancing total cost of goods sold.
• C. The correction has no measurable impact on cost of goods sold calculations over the two-year period.
• D. The correction increases second year cost of goods sold, creating permanent accounting discrepancies across periods.

Answer: (B)