The Accounting Changes Identified by Current GAAP Include All of the Following

question 82

Multiple Choice

The accounting changes identified by current GAAP include all of the following except

• A)correction of an error
• B)change in accounting principle
• C)change in accounting estimate
• D)change in reporting entity

---

Definitions:

Unit Product Cost

The total cost assigned to a single unit of product, encompassing direct materials, direct labor, and manufacturing overhead.

Variable Costing

A costing method that includes only variable manufacturing costs—direct materials, direct labor, and variable manufacturing overhead—in product costs.

Production Cost

The total expense incurred in manufacturing goods, including materials, labor, and overhead costs.

Variable Overhead

The costs that fluctuate with the level of production or business activity, such as utilities or materials.