Which of the Following Is Not an Example of an Error

question 18

Multiple Choice

Which of the following is not an example of an error?

• A) A change from an accounting practice that is not generally acceptable to a practice that is generally acceptable.
• B) Mathematical mistakes.
• C) A change from LIFO to FIFO inventory costing
• D) The incorrect classification of costs and expense

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Definitions:

Bad Debt Losses

Financial losses a company incurs when it cannot collect payment from a borrower or customer.

Decline

A decrease in the value or quantity of something.

EOQ Model

The Economic Order Quantity model is a formula used by businesses to determine the optimal order size that minimizes the total costs of holding and ordering inventory.

Ordering Cost

Ordering cost refers to the expenses incurred in placing and receiving orders from suppliers, including costs related to processing, shipping, and receiving.