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:

John Kotter

A professor and change management expert known for his 8-step process for leading change within an organization.

Eight-Step Model

A systematic process or framework used to address complex problems or implement changes in an organization effectively.

HRM

Human Resource Management, the strategic approach to managing employment relations which includes hiring, administration, and developing policies for working people.

Organizational Change

The process through which a company undergoes a transformation in its business processes, organizational structures, or cultural changes.