A Company Changes from Capitalizing and Amortizing Preproduction Costs to Recording

question 25

Multiple Choice

A company changes from capitalizing and amortizing preproduction costs to recording them as an expense when incurred, because future benefits associated with those costs have become doubtful.This accounting change should be recognized as a

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

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Definitions:

Noise

Disturbances or unwanted sounds that interfere with communication, concentration, or the enjoyment of an environment.

Emotional Timing

The appropriate or effective management and expression of emotions in various situations, considering context and interpersonal dynamics.

Emotional Quotient

A measure of a person's ability to recognize and manage their emotions and the emotions of others.

Situational Timing

The identification of the most appropriate or opportune moment to take action within a specific context.