Which of the Following Is NOT Considered a Change in Accounting

question 41

Multiple Choice

Which of the following is NOT considered a change in accounting policy?

• A) change in depreciation method
• B) change from FIFO to weighted average cost
• C) initial adoption of a new accounting standard
• D) change in accounting for a defined benefit pension plan from deferral and amortization to immediate recognition

Comprehend how the least squares method is used to fit the regression line and its implications.

Understand the concept of R-Squared in explaining the variance of the dependent variable.

Differentiate between specific and systematic risk within the context of regression analysis.

Understand the assumptions underlying regression analysis and the significance of any violations.

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Definitions:

Variable Cost

Costs that vary in direct proportion to changes in levels of production or business activity, such as materials and labor.

Fixed Cost

A cost that does not change with the volume of sales.

Fixed Costs

Expenses that do not change in proportion to the activity of a business, such as rent, salaries, and loan payments.

Variable Costs

Costs that vary directly with the level of production or sales, such as materials and labor.