Which of the Following Disclosures Is Not Required for a Change

question 61

Multiple Choice

Which of the following disclosures is not required for a change from average cost to FIFO?

• A)Basic and diluted earnings per share for the current period and each prior period presented
• B)The nature of the change in accounting policy
• C)The amount of the adjustment relating to periods before those presented
• D)All of these are required.

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Definitions:

Total Process Simplification

The systematic reduction of complexity in business processes with the aim of improving efficiency, effectiveness, and flexibility.

Level Schedules

Scheduling products so that each day’s production meets the demand for that day.

Small Batches

The production strategy involving the manufacture of small quantities of items to reduce costs and increase efficiency in response to specific demands.

Large Batches

Production method where goods are manufactured in significantly large quantities at once, often leading to economies of scale but increased inventory.