A Change in the Method of Inventory Pricing from FIFO

question 13

Multiple Choice

A change in the method of inventory pricing from FIFO to LIFO would be accounted for as a (an) :

• A) Part of discontinued operations
• B) Part of gross profit
• C) Change in accounting principle
• D) Change in estimate.

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Definitions:

Remaining to Spend

The amount of budget or funds left available to use or allocate.

Cost Of Goods

The direct expenses associated with producing goods, including materials and labor costs, but excluding indirect expenses like distribution and sales force costs.

Operating Expenses

Costs associated with the day-to-day operations of a business, including rent, utilities, and payroll.

Sales

the exchange of goods or services for money, representing a key activity for businesses to generate revenue.