Stone Company Changed Its Method of Pricing Inventories from Average

question 52

Multiple Choice

Stone Company changed its method of pricing inventories from average cost to FIFO.What type of accounting change does this represent?

• A)A change in accounting estimate for which the financial statements for prior periods included for comparative purposes should be presented as previously reported.
• B)A change in accounting policy for which the financial statements for prior periods included for comparative purposes should be presented as previously reported.
• C)A change in accounting estimate for which the financial statements for prior periods included for comparative purposes should be restated.
• D)A change in accounting policy for which the financial statements for prior periods included for comparative purposes should be restated.

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Definitions:

Regression Model

A statistical technique used to estimate the relationships among variables, often used to predict a dependent variable based on one or more independent variables.

Crime Rates

A measure of the incidence of crimes reported in a particular area, often expressed as a ratio per unit of population over a specific period of time.

Multiple Linear Regression

Multiple linear regression is a statistical technique that models the relationship between a dependent variable and two or more independent variables by fitting a linear equation to observed data.

Statistical Model

A mathematical representation or approximation of a real-world process with the purpose of understanding or predicting data patterns.