When an Inventories Costing Formula Is Changed, the Change Is

question 10

Multiple Choice

When an inventories costing formula is changed, the change is required to be applied:

• A) prospectively and the adjustment taken through the current profit or loss.
• B) prospectively and the current period adjustment recognised directly in equity.
• C) retrospectively and the adjustment taken through the opening balance of retained earnings.
• D) retrospectively and the adjustment recognised as an extraordinary gain or loss.

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Definitions:

Informal Training

A learning process that occurs in a less structured context, without formal curriculum, often as part of daily activities.

Experienced Employee

An individual who has gained a significant amount of knowledge, skill, and expertise in their profession over time.

Hawthorne Effect

A phenomenon where individuals modify an aspect of their behavior in response to their awareness of being observed.

Productivity

The measure of the efficiency of a person, machine, system, etc., in converting inputs into useful outputs.